Shimla | February 1, 2026
Chief Minister Thakur Sukhvinder Singh Sukhu on Sunday termed the Union Budget 2026–27 as anti-poor and anti-farmer, accusing the Centre of ignoring Himachal Pradesh and other hill states. He said the budget reflects an unfair and inequitable distribution of resources and fails to address the priorities of mountainous and disaster-prone regions.
The Chief Minister expressed serious concern over the 16th Finance Commission’s decision to discontinue Revenue Deficit Grants (RDGs), calling it a grave injustice to small hill states. He said RDGs, provided under Article 275(1) since 1952, have been abruptly stopped for the first time, despite Himachal’s repeated representations.
“Under the 15th Finance Commission, Himachal received nearly ₹37,000 crore as RDGs. Even during the interim period, ₹11,431 crore was released. Discontinuing this support ignores our structural handicaps,” Sukhu said, citing 67% forest cover, high service delivery costs in hilly terrain and disaster losses exceeding ₹15,000 crore in recent years.
He said the absence of RDGs will severely restrict the state’s ability to deliver essential services, maintain fiscal stability and invest in growth, pushing Himachal towards higher debt.
The Chief Minister also flagged the budget’s silence on unemployment, inflation and farmers’ distress. He said apple growers, contributing nearly ₹5,000 crore annually to the state economy, have been completely ignored, with no concrete measures for MSP, modernization or infrastructure.
Sukhu said the budget overlooks long-pending railway projects such as Bhanupali-Bilaspur and Baddi-Chandigarh lines and rejected Himachal’s demand to raise the borrowing limit from 3% to 4%.
Despite being a major tourist destination, the state has received no specific allocation for tourism infrastructure. He said while a Buddhist Circuit has been announced for the Northeast, Himachal’s Buddhist circuit has been ignored.
He added that interest-free loans to states remain capped at ₹1.5 lakh crore with restrictive conditions, while the end of GST compensation has caused recurring revenue losses.
“As a special category hill state with fragile ecology and frequent disasters, Himachal needs stronger fiscal support, disaster-resilient infrastructure funding and greater weightage for forest and ecological indicators,” Sukhu said.
He urged the Centre to restore RDGs, strengthen cooperative federalism and engage in meaningful dialogue to ensure inclusive and region-balanced growth.
Union Budget 2026–27: Anti-People, Anti-Federal, Anti-Himachal — CPM
The CPI(M) has slammed the Union Budget 2026–27 as anti-people and anti-federal, accusing the Modi government of protecting corporate interests while cutting lifelines for workers, farmers and the poor.
CPM State Secretary Sanjay Chauhan said the government’s claim of fiscal discipline masks tax concessions to the rich and deep cuts in welfare spending. With tax revenues falling short in 2025–26, the Centre has chosen to slash expenditure instead of fixing the economy, he said.
Allocations for agriculture, rural development, education, health, social welfare, SC/ST welfare and the gender budget have been cut sharply, while food, fertiliser and fuel subsidies face further reductions. Chauhan called it a direct attack on peasants and workers at a time when farm prices are collapsing.
He said the Centre has also weakened federalism by cutting transfers to states by over Rs 2 lakh crore, worsening the financial crisis of states already hit by poor GST collections.
Terming the Budget disastrous for Himachal Pradesh, Chauhan said a revenue-deficit, disaster-hit state has been completely ignored. Despite losses exceeding Rs 18,000 crore since 2023, there is no special disaster package and no clarity on revenue-deficit grants under the 16th Finance Commission.
Himachal’s core sectors—horticulture and tourism—have also been sidelined. Reduced import duties under FTAs with the EU and New Zealand threaten apple farmers, while the Market Intervention Scheme has been cut from Rs 1,500 crore to a token amount. There is no allocation for improving air, rail or road connectivity, making tourism revival impossible.
“The Budget deepens inequality, chokes states and abandons hill regions like Himachal Pradesh,” Chauhan said.
