Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday presented a ₹54,928-crore budget for 2026–27, flagging severe financial stress due to the discontinuation of the Revenue Deficit Grant (RDG) by the Sixteenth Finance Commission, which is expected to result in an annual loss of over ₹8,000 crore to the state.
The budget proposals were overshadowed by the withdrawal of the RDG, with the Chief Minister noting that it was his fourth budget as Finance Minister. He spoke for nearly four hours in the Assembly.
In an unprecedented move, part of the salaries of government functionaries, from the Chief Minister, ministers and MLAs to senior bureaucrats and officers of the Indian Police Service and Indian Forest Service, as well as Group A and Group B employees, have been temporarily deferred in varying proportions.
The Chief Minister, Deputy Chief Minister and Council of Ministers will see a 50 per cent deferment in salary for six months, while MLAs and top bureaucrats, including the Chief Secretary and Principal Secretaries, will face a 30 per cent deferment. Heads of departments will see a 20 per cent cut, while 30 per cent salaries of the Director General of Police and senior police officers, and 20 per cent for officers up to the rank of Superintendent of Police, have also been deferred.
Similarly, salaries of Indian Forest Service officers have been deferred, while Group A and B employees will face a temporary 3 per cent deferment. The Chief Minister said the deferred amounts would be returned once the state’s financial condition improves.
He asserted that Himachal Pradesh, given its geographical constraints, may find it difficult to become revenue-surplus, and said the budget focuses on strengthening the rural economy. Measures include promoting natural farming by substantially increasing the Minimum Support Price for such produce.
“Despite tight financial conditions, we have tried to balance the budget by providing relief to weaker sections and strengthening the rural economy,” Sukhu said, while also criticising the opposition BJP for not supporting the state during the financial strain.
The opposition staged a protest in the Assembly shortly after the Chief Minister began his speech, objecting to remarks against the BJP. The Speaker adjourned the House for 15 minutes amid the uproar, after which BJP members staged a walkout.
Leader of Opposition Jai Ram Thakur termed the budget a sign of an impending financial emergency, questioning the legality of salary deferment without such a declaration and accusing the government of not being transparent about the state’s finances.
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