Shimla, March 21 – Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a budget of Rs 54,928 crore for 2026-27, focusing on the rural economy, and blamed the discontinuation of the revenue deficit grant to the state for the annual losses of over Rs 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 negatively impacted the state's budget, resulting in an annual loss of Rs 8,105 crore.
"They will never forget this," he said, drawing immediate reaction from BJP members, which was later withdrawn.
This is the first time the state's budget has been reduced to Rs 54,928 crore from Rs 58,514 crore for the current fiscal year, resulting in a cut of Rs 3,586 crore.
As the slogans continued, Speaker Kuldeep Singh Pathania adjourned the House until 11:30 am, after which the BJP members left the session, although Congress MLAs remained seated.
Minutes later, BJP members returned and continued raising slogans while the chief minister continued with his budget speech.
Sukhu, who was presenting his fourth budget, said that comparing Himachal Pradesh with Uttarakhand and Assam is inaccurate because Himachal is a hilly 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 state is facing serious financial challenges, and the discontinuation of the RDG has created additional pressure, said the CM, and announced that 50 per cent of the Chief Minister's salary, 30 per cent of the Deputy Chief Minister and ministers' salaries, and 20 per cent of the MLAs' salaries will be temporarily deferred for the next six months.
Moreover, 30 per cent of the salaries of the Chief Secretary, additional chief secretaries, principal secretaries, DGP, ADGP, 20 per cent of the salaries of secretaries, heads of departments, IG, SP, chairpersons, vice chairpersons of boards, corporations and commissions and officials in similar positions have also been temporarily deferred.
He said that conflicts around the world are starting to impact the state, and LPG prices are increasing due to the ongoing Iran war.
The chief minister, who holds the finance portfolio, announced a provision of Rs 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 per cent growth for the current fiscal year, and its per capita income has increased to Rs 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, Rs 1,500 per month will be given to eligible women, fulfilling the poll guarantee, and 27,000 poor families who don't have 'Pacca' houses will be provided with the same.
Referring to the tourism sector, the chief minister also announced plans to develop an aerocity in Kangra and a provision of Rs 3,300 crore to acquire land to build an airport in the district.
He said that 50 new eco-tourism sites would be developed, and the state government would organize fairs and adventure activities in famous hill resorts and other places to increase tourist footfall during weekends.
Forest cover will be increased from 29.5 per cent to 32 per cent in 2026-27, by plantation on 8,000 hectares at Rs 55 crore, and women and youth mandals will be involved in plantations to ensure regular income for them.
The state also hiked milk procurement price by Rs 10, with cow milk to be bought for Rs 61 per litre, and buffalo milk at Rs 71.
Sukhu further announced a minimum support price for fish at Rs 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 Rs 300 crore to Rs 600 crore to meet the additional burden.
According to the revised estimates of the year 2025-26, the total revenue receipts stood at Rs 44,537 crore, and the expenditure was at Rs 54,349 crore, a deficit of Rs 9,812 crore.
