Himachal Budget Session: Governor Omits Key Sections on Finance Commission

Himachal Budget Session: Governor Omits Key Sections on Finance Commission.webp

Shimla, February 16 – Himachal Pradesh Governor Shiv Pratap Shukla surprised legislators on the opening day of the Budget Session by delivering his customary address, which was 50 pages long, in just a couple of minutes here, skipping sections related to the 16th Finance Commission.

Political observers said the Governor avoided a politically sensitive issue regarding the discontinuation of the Revenue Deficit Grant (RDG) by the 16th Finance Commission, a crucial issue that affects small and hill states.

However, they believe the Governor has set an "aggressive tone" for the main opposition BJP, which has been blaming the Congress government for fiscal mismanagement and for allegedly halting centrally funded mega projects, such as a medical device park, which would help improve the state's economy, citing stubbornness, corruption, and gross mismanagement.

In his address, the Governor read only the opening lines of his speech relating to the passage of supplementary demands for 2025–26, the budget for 2026–27, and other legislative business.

The Budget Session begins with the Governor's address, and his address usually lasts for well over an hour and lists out the government's achievements.

In 2015, then Governor Kalyan Singh had finished his 39-page address in a couple of minutes.

At that time also, there was a Congress government in the state.

"Since paragraphs three to sixteen of my speech pertain to a constitutional body, I would not like to read them," said Shukla.

He wrapped up his 50-page speech in under three minutes, reading only the first two paragraphs that outlined the session's agenda – passing supplementary demands for 2025–26, the budget for 2026–27, and other legislative business.

The speech had noted that Article 275(1) of the Constitution provides grants to states unable to bridge the gap between revenue and expenditure.

Historically, from the first Finance Commission in 1952 through the 15th Finance Commission (2020–25), Himachal Pradesh had consistently received RDG.

Paragraphs 15 and 16, which the Governor skipped, emphasised that the 16th Finance Commission's decision to discontinue RDG would significantly affect small and hill states, particularly Special Category States like Himachal Pradesh.

The speech had stressed that for hilly and border states, where revenue generation is limited due to geography and natural resources, the RDG plays a critical role in funding development projects, social welfare schemes, and disaster management programmes.

Responding to the Governor's decision to skip reading the entire customary address, Chief Minister Sukhvinder Singh Sukhu downplayed the Governor's decision, saying it was "not an exception" as Governors have skipped addresses in the past.

On the state's financial scenario, he said: "This is not about the government; RDG is our right. Do not harm the rights of the state."
 
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16th finance commission article 275 bjp political party budget session congress party constitutional grants financial commission fiscal management himachal pradesh legislative business mega projects revenue deficit grant shiv pratap shukla state government sukhvinder singh sukhu supplementary demands
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