Himachal's Tumultuous Budget: CM Blames Revenue Deficit Cuts for Financial Strain

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu unveiled a Rs 54,928-crore budget for 2026-27, attributing the financial strain to the termination of the revenue deficit grant, resulting in annual losses exceeding Rs 8,000 crore. This grant, provided by the Centre to bridge the gap between state revenue and expenses, was ceased earlier this month.

The budget presentation witnessed disruptions from opposition BJP members, as Sukhu accused them of not supporting the state in reinstating the vital grant. The sparring led to adjournment, with members eventually returning to protest while Sukhu continued his address. The budget, decreased for the first time to Rs 54,928 crore from the previous Rs 58,514 crore, sees a reduction of Rs 3,586 crore in budget size.

In response to financial pressures, the government announced a temporary deferral of salaries for top officials. Furthermore, initiatives include free electricity for poor families, development of eco-tourism sites, and an aerocity. The state anticipates an 8.3% growth, with per capita income rising. Efforts are aimed at enhancing tourism and agriculture despite budgetary constraints.