Himachal budget cut to Rs 54,928 cr

Metro India News | shimla :

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday presented a Rs 54,928-crore Budget for 2026–27, marking a rare reduction in the state’s fiscal size, and blamed the Centre’s decision to discontinue the revenue deficit grant (RDG) for an annual loss of over Rs 8,000 crore.

Calling the move a major setback, Sukhu said the withdrawal of RDG — financial assistance meant to bridge the gap between a state’s revenue and expenditure — has resulted in a yearly loss of Rs 8,105 crore. His remarks triggered sharp protests from BJP members, leading to sloganeering and brief adjournment of the House by Speaker Kuldeep Singh Pathania.

Despite disruptions, Sukhu continued his speech, stating that Himachal Pradesh’s unique hill geography limits its revenue potential and warrants special financial support. He argued that comparisons with states like Uttarakhand and Assam are misplaced and reiterated the demand for a “green bonus” for preserving forests and ecology.

The Budget size has been reduced by Rs 3,586 crore from the current fiscal’s Rs 58,514 crore, making it the first such cut in the state. The government has allocated Rs 500 crore to complete around 300 pending development works.

On the economic front, the state is projected to record 8.3 per cent growth this fiscal, with per capita income rising to Rs 2,83,626.

Key announcements include an aerocity in Kangra, Rs 3,300 crore for land acquisition for a new airport, and a hike in milk procurement prices to Rs 61 per litre for cow milk and Rs 71 for buffalo milk. The government also proposed a minimum support price of Rs 100 per kg for fish, along with plans to set up a Kisan Aayog and a women tourism fund.