On Saturday, Chief Minister Sukhu of Himachal Pradesh announced that the state's forthcoming budget, scheduled for presentation on March 21, will prioritize self-reliance and aim to benefit all segments of society. Despite a reduction in revenue deficit grants (RDG), there will be no cuts to social programs, salaries, or pensions. Speaking to reporters before a special pre-budget meeting at the state secretariat in Shimla, Sukhu mentioned that the government is conducting several consultation meetings to prepare the budget and gradually lead the state towards financial independence.
No Cuts to Welfare Programs
The Chief Minister emphasized that the upcoming budget will not be based on cuts. He assured that every social welfare initiative will continue, and there will be no reductions in the salaries or pensions of government employees. He pointed out that the state is facing financial pressure following the 16th Finance Commission's decision to discontinue the revenue deficit grant, which had been provided to Himachal Pradesh for nearly seventy years.
Financial Implications of Grant Discontinuation
According to Sukhu, this decision could result in an annual loss of ₹8,000 to ₹10,000 crores for the state between 2026 and 2031, making it essential for the government to strengthen its revenue resources. He noted that Himachal Pradesh plays a crucial role in maintaining the ecological balance of the country but receives minimal compensation in return. The state contributes over ₹90,000 crores worth of ecological services to the nation each year. He stated that if commercial logging were permitted, the state would not require any revenue deficit grants.
Royalty from Hydropower Projects
Sukhu further explained that the state receives only 12% royalty from hydropower projects established by central public sector companies like SJVN, NHPC, and NTPC. He suggested that if these hydropower projects were debt-free and the state received 50% royalty, Himachal Pradesh would not need RDG assistance. The Chief Minister clarified that under Article 275(1) of the Constitution, RDG is allocated to states where there is a gap between revenue and expenditure.
-
Chhattisgarh Govt Launches Major Recruitment Drive To Fill 700 Vacancies In Govt Colleges
-
Moltbook: Zuckerberg Acquires AI-Only Social Media Platform Moltbook; AI Agents Will Now Work for Humans..
-
Sabarimala women entry issue flares up ahead of polls; CPI(M), Opposition spar
-
Two arrested for transporting ration rice illegally in Gundlupete
-
Ministry Assures Fuel Availability Amid Rising Geopolitical Tensions
