Shimla, February 9 Former Chief Minister and senior BJP leader Prem Kumar Dhumal expressed concern about the financial condition of Himachal Pradesh on Monday, stating that the current fiscal stress is not a sudden development but a result of long-foreseen challenges that the government failed to address in time.
In a statement issued here, he said that the phased withdrawal of the Revenue Deficit Grant (RDG) was well known in advance and had been clearly mentioned in the Finance Commission's recommendations.
He pointed out that it was already clarified that the RDG would end after March 31, 2026, and portraying it as a new or unexpected development is misleading.
He also questioned why the state government did not formulate alternative revenue-generation strategies and a robust financial management plan despite having ample time to prepare.
He emphasised that implementing the Finance Commission's recommendations is a constitutional responsibility of the Centre, and instead of creating confusion or indulging in political blame games, the state government should introspect and explain its own lack of preparedness.
Drawing from his experience as chief minister, Dhumal said that economic challenges are not uncommon for resource-constrained states, but responsible governance lies in taking timely and tough decisions.
During difficult financial phases, our government adopted strict fiscal discipline, controlled discretionary expenditure, curtailed unnecessary travel and official luxuries and ensured that even the highest offices led by personal example, the former chief minister said, adding that he ensured simplicity in official conduct and abstained from placing avoidable financial burdens on the state exchequer.
Highlighting structural reforms undertaken during his tenure, Dhumal said the BJP government focused on strengthening agriculture and horticulture to enhance state revenue. By promoting vegetable production and marketing, annual turnover increased from around Rs 250 crore to nearly Rs 2,250 crore.
He further stated that the decline in apple production was compensated through diversification into alternative crops, which significantly improved revenue generation and contributed to better budgetary balance.
In a veiled jibe at the incumbent government, he remarked that while the government speaks of financial distress, it is simultaneously appointing a large number of chairpersons, advisors, and office-bearers, leading to substantial additional expenditure.
Spending on new vehicles, extra staff, and official facilities contradicts the principles of financial discipline, Dhumal said, emphasising that if the situation is genuinely grave, the first step should be to curb non-essential expenditure.
On Centre-state relations, Dhumal said that facts must be placed honestly before the public. He noted that whenever the BJP has been in power at the Centre, Himachal Pradesh has received special support -- whether industrial packages or benefits associated with special category status.
Mere political rhetoric, he said, cannot resolve economic challenges as it requires sound policy decisions, resource mobilisation, and expenditure control.
The former chief minister cautioned that repeated public assertions by the state leadership that the treasury is empty has weakened public confidence. What is required is decisive action -- a comprehensive review of expenditure, clear prioritisation, and strengthened financial management, he said.
