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The Chief Minister of Himachal Pradesh, Sukhvinder Singh Sukhu on Saturday said the state government's upcoming budget scheduled to be presented on March 21 will be a self-reliance budget aimed at the welfare of all sections of society and will not involve any cuts in social schemes, salaries or pensions despite the reduction in Revenue Deficit Grant (RDG).
Speaking to media persons in Shimla ahead of a special pre-budget meeting at the state secretariat, Sukhu said the government has been holding a series of consultations to prepare the budget and ensure the state gradually moves towards financial self-reliance. "The upcoming budget will not be a cut-based budget. We will take care of every section of society. No social welfare scheme will be stopped and there will be no cut in salaries or pensions of government employees," the Chief Minister said. He said the state faces financial pressure after the 16th Finance Commission decided to discontinue the Revenue Deficit Grant that Himachal Pradesh had been receiving for nearly seven decades. According to the Chief Minister, the decision could result in an annual loss of 8,000-10,000 crore to the state between 2026 and 2031, making it necessary for the government to strengthen its own revenue resources. Sukhu said Himachal Pradesh contributes significantly to the country's ecological balance but receives little compensation in return. "Himachal serves the nation's ecology worth over 90,000 crore every year. If we were allowed to cut forests for commercial purposes, we would not need the Revenue Deficit Grant at all," he said. He added that the state also receives only 12 per cent royalty from hydropower projects set up by central public sector companies such as SJVN, NHPC and NTPC. "If hydropower projects become debt-free and the state is given 50 per cent royalty, Himachal will not need RDG support," he said. The Chief Minister noted that the RDG is provided under Article 275(1) of the Constitution to states where there is a gap between revenue and expenditure. Sukhu also rejected recent remarks made by the Punjab leadership regarding Himachal's financial position, saying the statements were misleading. "The statement made by the Punjab Finance Minister in their Assembly was incorrect. They said Himachal had imposed tax on Punjab vehicles, which is not true. Punjab is like our brother state," he said. The Chief Minister said that while Punjab had promised restoration of the Old Pension Scheme (OPS) for employees, Himachal Pradesh had already implemented it. "Instead of fulfilling their own promises, they are making misleading comments about Himachal. Our financial condition is better than what they claim," he added. On the issue of LPG supply constraints reported in some sectors, Sukhu said the overall situation in the state remains under control, though commercial units have experienced some shortage. "The situation is normal at present. Supply will improve further as the Centre increases LPG allocation," he said. Responding to questions on the state government's recent decision to keep the Vigilance and Anti-Corruption Bureau outside the ambit of the Right to Information Act, Sukhu said the move was taken strictly within the legal framework. The Chief Minister declined to comment on questions related to the Haryana Rajya Sabha elections scheduled for March 16. He said the government's focus remains on strengthening Himachal's economy and moving towards fiscal self-reliance through the upcoming budget. (ANI)
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