Shimla, March 21 – In a first in the state's history, Himachal Pradesh has reduced its budget size by ₹3,586 crore, with the outlay down to ₹54,928 crore for 2026-27 from the current fiscal of ₹58,514 crore.
Justifying the decision, Chief Minister Sukhvinder Singh Sukhu, in his budget speech, informed the Assembly that the decision to reduce the outlay was to address the mounting debt trap left by the previous BJP regime. He said that the time for populist measures was over, as there was a need to cut down on unproductive expenditure.
He said that the people of the hills were tough and resilient and would face a financial crisis bravely.
Sukhu, who holds the Finance portfolio, said that this was the first time since 1952 that the budget was being presented in the absence of the Centre's Revenue Deficit Grant (RDG).
Saying that the poorest of the poor would be identified for their upliftment, the Chief Minister said, "The state's BPL list will especially include the names of the poorest of poor families. Presently, there are 2.65 lakh BPL families in the state, and now, the government is identifying the poorest of the poor to uplift them. One lakh deprived poorest of poor families to be helped under the Mukhya Mantri Apna Sukhi Parivar scheme.
"These families will get 300 units of free power. As many as 27,000 families out of these who do not have a pucca house will be helped to construct houses, and ₹1,500 will be given to all women in these families as part of the fulfillment of the guarantee."
Ruckus prevailed in the House as CM Sukhu blamed the discontinuation of the Revenue Deficit Grant (RDG) and the end of GST compensation for the state's financial distress.
He accused the BJP of pushing Himachal into a debt trap, stating that the crisis could have been avoided had they settled outstanding loans.
When the CM said that those who did not support the state on the RDG had betrayed Himachal's interests, BJP legislators, led by Leader of Opposition and former chief minister Jai Ram Thakur, stormed into the Well.
After a 20-minute pandemonium, the CM resumed the speech. Sukhu, who presented his fourth budget, said, "It is unfair and an injustice to the people of Himachal to stop the grant of RDG to the state." In the fishery sector, the Chief Minister announced a minimum support price (MSP) for fish procurement at ₹100 per kg under the Mukhya Mantri Machuara Sahayta scheme.