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Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday said that the state budget for 2026-27 is focused on "transformation and strengthening the rural economy," while acknowledging that the discontinuation of the Revenue Deficit Grant (RDG) has led to a financial loss of approximately Rs 8,000-10,000 crore.
Addressing the media after presenting the budget, CM Sukhu emphasised that the financial plan was not politically driven but aimed at long-term development and welfare "This is not a political budget. It is a budget to strengthen the rural economy. We will have to face these circumstances," he said. The Chief Minister noted that the state government made efforts to address the issue of the discontinued grant, including consultations with the Leader of Opposition, but these attempts did not yield any concrete outcome. He further pointed out that although Himachal Pradesh has resources, it does not have full rights over them, calling it a matter of concern. Sukhu stated that due to financial constraints, the overall size of the budget has been reduced from around Rs 58,000 crore to nearly Rs 54,000 crore. Despite this, he said that the government has introduced several schemes aimed at benefiting the common people. "The schemes we have brought will benefit the common people. We conducted surveys to identify Below Poverty Line families and reach people at the grassroots," he added. Highlighting key welfare measures, the Chief Minister announced 300 units of free electricity for poor families, terming it their rightful entitlement. He also said that honorariums for specially-abled individuals have been increased, alongside reforms in the education and healthcare sectors. "We are focusing on providing pure drinking water in Shimla and across the state and introducing high-end technology in the health sector," he said. The Chief Minister also outlined plans for long-term development, including the creation of three world-class cities to boost the state's economy. Defending austerity measures, Sukhu clarified that no salary cuts have been imposed on government employees, describing the move as a deferment rather than a reduction. "We are not doing this for political benefit. These decisions are in the interest of Himachal Pradesh," he said. The Chief Minister also criticised the Bharatiya Janata Party (BJP), alleging that the opposition does not stand with the state's interests during challenging times. Referring to the financial situation, he said Himachal Pradesh is currently burdened with a debt of nearly rs 1 lakh crore, stressing the need for collective efforts to ensure economic stability. "When it comes to the state's interests, everyone must come together," he added. (ANI)
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