Shimla: Himachal Pradesh has slipped into a deep financial crisis, with Chief Minister Sukhvinder Singh Sukhu on Wednesday painting a grim fiscal picture and openly expressing disappointment over the Union Budget presented by Finance Minister Nirmala Sitharaman, saying it has failed to address the hill state’s mounting challenges.
Talking to mediapersons here, the Chief Minister said the state government has decided to generate revenue from land granted to hydropower projects as a compensatory measure, as Himachal is staring at a massive financial blow due to the stoppage of Revenue Deficit Grant (RDG) from 2026 to 2030.
“This alone will result in a loss of over ₹48,000 crore during this period, pushing the state into a fresh severe financial crisis,” Sukhu said.
He said the Centre must understand that Himachal Pradesh was not created as a revenue-surplus state, but as a special category hill state with inherent geographical and economic constraints. “Unfortunately, these realities have been ignored. The Union Budget has offered no concrete relief to Himachal,” he remarked.
The Chief Minister said the situation has worsened further due to the end of GST compensation, repeated natural disasters, and the absence of any dedicated central grant for climate change mitigation and disaster management, despite Himachal being among the worst-affected states.
Sukhu said the state Cabinet will hold a detailed discussion on February 8 to deliberate on the prevailing economic challenges.
“The stoppage of RDG between 2026 and 2030, loss due to withdrawal of GST compensation, recurring disasters, and the need for better utilisation of resources are matters of grave concern for Himachal,” he said.
Striking a larger note, the Chief Minister said the crisis is not about any single party or government, but about the future of Himachal and its people.
“This is a fight in the interest of Himachal Pradesh. For building a self-reliant Himachal, we must rise above politics and take united, bold decisions,” he asserted.
The Chief Minister’s remarks come amid growing concern within the state over shrinking fiscal space and increasing liabilities, with the Budget failing to provide any special package or relief to disaster-prone Himalayan states like Himachal Pradesh.
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