Chief Minister Sukhvinder Singh Sukhu on Saturday said the Himachal Pradesh budget to be presented on March 21 will focus on financial self-reliance. He assured that there will be no cuts in social welfare schemes, salaries or pensions despite the reduction in Revenue Deficit Grant (RDG).
Speaking to reporters in Shimla ahead of a pre-budget meeting at the state secretariat, Sukhu said the government has been holding consultations with various stakeholders while preparing the budget.
"The upcoming budget will not be a cut-based budget. We will take care of every section of society. No social welfare scheme will be stopped and there will be no cut in salaries or pensions of government employees," the Chief Minister said.
He said the state is facing financial pressure after the 16th Finance Commission decided to discontinue the Revenue Deficit Grant that Himachal Pradesh had been receiving for nearly seven decades.
The Chief Minister further said the decision could lead to an annual loss of ₹8,000-10,000 crore for the state between 2026 and 2031. This makes it necessary for the government to strengthen its own revenue sources.
Sukhu said Himachal Pradesh contributes significantly to the country’s ecological balance but receives limited compensation in return. "Himachal serves the nation's ecology worth over ₹90,000 crore every year. If we were allowed to cut forests for commercial purposes, we would not need the Revenue Deficit Grant at all," he said.
He also pointed out that the state receives only 12 per cent royalty from hydropower projects set up by central public sector companies such as SJVN, NHPC and NTPC. “If these hydropower projects become debt-free and the state is given 50 per cent royalty, Himachal would not need RDG support,” he said.
The Chief Minister explained that the Revenue Deficit Grant is provided under Article 275(1) of the Constitution of India to states where there is a gap between revenue and expenditure.
He also rejected recent remarks by the Punjab leadership regarding Himachal’s financial condition. He said the statements were misleading. “The statement made by the Punjab Finance Minister in the Assembly was incorrect. It was said that Himachal had imposed a tax on Punjab vehicles, which is not true. Punjab is like our brother state,” he said.
The Chief Minister added that while Punjab had promised to restore the Old Pension Scheme (OPS) for employees, Himachal Pradesh had already implemented it. “Instead of fulfilling their own promises, they are making misleading comments about Himachal. Our financial position is stronger than what they claim,” he said.
On reports of LPG shortages in some areas, Sukhu said the overall situation in the state remains under control, though some commercial establishments have faced supply issues. “The situation is normal at present. Supply will improve once the Centre increases LPG allocation,” he said.
Responding to questions about the decision to keep the Vigilance and Anti-Corruption Bureau outside the ambit of the Right to Information Act, Sukhu said the move was taken within the legal framework. He declined to comment on questions related to the Haryana Rajya Sabha elections scheduled for March 16.
The Chief Minister said the government’s main focus is to strengthen Himachal’s economy and move towards financial self-reliance through the upcoming budget.
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