The budget session of the Himachal Pradesh Assembly, which resumes on March 18 in Shimla, is likely to be overshadowed by the state’s financial stress in view of the withdrawal of the Revenue Deficit Grant (RDG) by the 16th Finance Commission.
The session may turn stormy, as the opposition BJP is aggressively preparing to corner the Congress government over alleged financial mismanagement and unfulfilled announcements made in the previous three budgets presented by Chief Minister Sukhvinder Singh Sukhu, who holds the finance portfolio also.
The RDG withdrawal has made the state government’s task more difficult, with CM Sukhu scheduled to present the budget proposals for 2026–27 on March 21. There are concerns that aspirations of people may remain unfulfilled even in the fourth year of the government.
This comes especially as the Chief Minister, ahead of the budget session on Tuesday, withdrew Cabinet rank status from advisors and chairpersons/vice-chairpersons of boards and corporations, and deferred 20 per cent of their salaries/emoluments for six months. He has already hinted that this is just the beginning.
“The state is in financial stress in view of the discontinuation of RDG, which used to relax the state financially upto Rs 8000-10,000 crore annually till five years. We have withdrawn the cabinet ranks from certain categories today. More reforms are underway to make the state self-reliant,” Sukhu said.
He added that the government will take care of poor, ensuring no cuts in education, healthcare, and social security pensions. “We are already discussing decisions over the past 8–10 days. We will assess where improvements can be made to support the poor and consider what contributions can be expected from those who have the capacity,” he said.
Leader of Opposition and former Chief Minister Jai Ram Thakur said, “I do not want to comment on the fourth budget to be presented by the Chief Minister right now. But yes, it is going to be a difficult Assembly session for the government, as it has not fulfilled announcements made in the previous three budgets.”
He alleged that the state is facing financial stress because of government mismanagement. “People have not received their due. There is corruption, illegal felling of trees, and decisions that are not in the interest of the state. We will raise all these issues, and the government has no answers,” Thakur said.
Thakur also questioned the government’s decision to remove the Vigilance and Anti-Corruption Bureau from the purview of the Right to Information Act. “This raises serious doubts about the intentions of the government. Why does the government want to hide information? How can it amend a central Act aimed at ensuring transparency in the government functioning?” Jai Ram Thakur asked.
He further said for the first time, there has been such a gap in the budget session, with discussion on the Governor’s address not being taken up immediately. He said the BJP Legislative Party will meet in the evening to finalise its strategy for the budget session.
The budget session is likely to heighten political tempers in Himachal Pradesh, with the government grappling with an acute financial crisis ahead of the 2026–27 budget due to unexpected withdrawal of Revenue Deficit Grant by the 16th Finance Commission.
The BJP has termed the situation a result of the government’s mismanagement, alleging that it failed to adequately present its case before the Finance Commission despite being aware of the possibility.
Meanwhile, Chief Minister Sukhu has tried to bring the BJP on board for a joint appeal to the Centre to restore the grant. However, the BJP has taken a different stand, stating it will not support what it calls the Congress’s attempt to blame the Centre for everything. The BJP had earlier walked out of an all-party meeting over the issue.
Also read: HP withdraws Cabinet rank status of advisors, board heads
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