Shimla, March 21 – Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a ₹54,928-crore budget for 2026-27, with a focus on the rural economy, and blamed the discontinuation of the revenue deficit grant to the state for annual losses exceeding ₹8,000 crore.
The grant, a financial assistance provided by the Centre to bridge the gap between the state's revenue and expenses, was discontinued earlier this month.
Sukhu's budget speech was disrupted by slogans from opposition BJP members after he accused them of not supporting the state on the issue of discontinuing the revenue deficit grant (RDG), which had impacted the state's budget, resulting in a loss of ₹8,105 crore annually.
"They will never forget this," he said, drawing immediate reaction from BJP members, after which the remark was expunged.
This is the first time that the state's budget has been reduced to ₹54,928 crore from ₹58,514 crore for the current fiscal year, resulting in a cut of ₹3,586 crore.
As slogans continued, Speaker Kuldeep Singh Pathania adjourned the House until 11.30 am, after which the BJP members left, although Congress MLAs remained seated.
Minutes later, BJP members returned and continued to raise slogans while the chief minister continued with his budget speech.
Sukhu, presenting his fourth budget, stated that comparing Himachal Pradesh with Uttarakhand and Assam was inappropriate, as Himachal is a hill state with limited resources like water and forests. "Himachal is the lung of North India and deserves a 'green bonus', but instead, the revenue deficit grant to the state has been discontinued."
The CM stated that the state is facing serious financial challenges, and the discontinuation of the RDG has further exacerbated the situation, and announced that 50% of the Chief Minister's salary, 30% of Deputy CMs and ministers' salaries, and 20% of MLAs' salaries will be temporarily deferred for the next six months.
Moreover, 30% of the salaries of the Chief Secretary, additional chief secretaries, principal secretaries, DGP, ADGP, 20% of the salaries of secretaries, heads of departments, IG, SP, chairmen, vice chairmen of boards, corporations and commissions and officials in similar positions have also been temporarily deferred.
He also stated that conflicts around the world are impacting the state, and that LPG prices are increasing due to the ongoing Iran war.
The chief minister, who holds the finance portfolio, announced a provision of ₹500 crore to complete pending works, adding that a list of 300 incomplete works has been prepared.
The state is expected to register an 8.3% growth for the current fiscal year, while its per capita income has increased to ₹2,83,626, he said.
Subsidies will be targeted to reach the poorest among the poor, and 1-lakh poor families will be given 300 units of free electricity, eligible women will be given ₹1,500 per month, fulfilling the poll guarantee, and 27,000 poor families who don't have 'Pacca' houses will be provided the same.
Referring to the tourism sector, the chief minister also announced plans to develop an aerocity in Kangra and a provision of ₹3,300 crore to acquire land to build an airport in the district.
He said that 50 new eco-tourism sites will be developed and added that the state government would organize fairs and adventure activities in famous hill resorts and other places to increase tourist footfall during weekends.
With a focus on the rural economy, the Chief Minister announced ₹300 crore for the empowerment of families of Gaddis, Gujjars and other communities, and ₹100 per Kg for the purchase of wool from shepherds.
Minimum Support Prices (MSP) for naturally grown crops like wheat have been increased from ₹60 to ₹80 per kg, maize from ₹40 to ₹50 per kg, barley from the Pangi valley from ₹60 to ₹80 per kg, and turmeric from ₹90 to ₹150 per kg.
Other initiatives include setting up seed villages to promote traditional seed production and reduce dependence on external hybrid seeds and allocation of ₹100 crore under the Himachal Forest Ecosystems Management and Livelihood project.
Forest cover would be increased from 29.5 per cent to 32 per cent in 2026-27, by plantation on 8,000 hectares at ₹55 crore, and women and youth mandals would be involved in plantations to ensure regular income for them.
The state also hiked milk procurement price by ₹10, with cow milk to be bought for ₹61 per litre, and buffalo milk at ₹71.
Sukhu further announced a minimum support price for fish at ₹100 per kg, "which will benefit over 6,000 fishermen in the state," and reduced the royalty rate on fish caught from reservoirs from 7.5 per cent to one per cent. A Kisan Aayog and women's tourism fund will also be constituted in the state, he added.
Objecting to the change in the name of MGNREGA, CM Sukhu said that the scheme would continue generating four lakh 'man-days' and the state government would provide ₹300 crore to ₹600 crore to meet the additional burden.
According to the revised estimates of the year 2025-26, the total revenue receipts stood at ₹44,537 crore, and the expenditure was at ₹54,349 crore, a deficit of ₹9,812 crore.