Chief Minister Thakur Sukhvinder Singh Sukhu chaired a meeting of MLAs from Una, Hamirpur and Sirmaur districts on the first day of the first session to finalise MLAs priorities for the financial year 2026-27.
He said that during 2025-26, the state government has already secured approval from NABARD for 73 projects worth Rs 713.87 crore. Out of these, 55 MLA priority projects worth Rs 512.31 crore were related to the Public Works Department, while 18 projects worth Rs 201.56 crore pertain to the Jal Shakti Department.
The Chief Minister directed that the allocated budget should be fully utilised and reimbursement claims should be submitted to the NABARD office before March 15. He said that the state government was also making efforts to get more MLA priority projects approved by NABARD by March 2026.
Sukhu said that in these three years, the state government had focused on public welfare policies, transparent governance and wide-ranging reforms. The aim of the government’s policies was to strengthen the state’s economy, empower youth and women, provide security to weaker sections and establish Himachal as a prosperous, green-energy and economically self-reliant state.
He expressed serious concern over the decision of the 16th Finance Commission to stop the revenue deficit grant (RDG) provided to states under Article 275(1) of the Constitution. He said that this grant had been continuously provided since 1952 up to the 15th Finance Commission to ensure financial stability of states. Stopping it for the first time was unjust to hill states like Himachal Pradesh, which face difficult geographical conditions. He said that Himachal Pradesh contributes significantly to environmental protection by imposing a complete ban on tree felling and also supplies water to other states through rivers originating here. In such circumstances, discontinuing the RDG was against the interests of the state.
He said that the 15th Finance Commission had recommended a revenue deficit grant of Rs 37,199 crore for the state. Additionally, during the COVID-19 period, the previous BJP government received Rs 11,431 crore as revenue deficit grant based on the interim report of the Finance Commission. He said that stopping this grant would cause a loss of nearly Rs 50,000 crore to the state.
The Chief Minister said that the state government would now have to take tough decisions to increase revenue along with ensuring efficient financial management. He criticised the upcoming Union Budget, saying that it ignores the middle class and farmers. Agriculture and horticulture were the backbone of Himachal Pradesh’s economy, yet the central budget has neither provided subsidies for orchardists nor mentioned infrastructure development for them.
He also said that no concrete announcement was made regarding the expansion of the Bhanupalli-Bilaspur and Chandigarh-Baddi railway projects. He described the Budget as being against the spirit of cooperative federalism and said that instead of making small hill states like Himachal Pradesh self-reliant, it pushes them further into debt. He demanded restoration of the revenue deficit grant and a special economic package for the state.
Also Read: Political heat in HP over sudden RDG withdrawal
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