Shimla, February 8: Central Culture and Tourism Minister Gajendra Singh Shekhawat clarified on Sunday that Himachal Pradesh has received significantly more Revenue Deficit Grant (RDG) in recent years compared to previous years.
However, he also emphasized the need for states to strengthen their revenue systems and adopt fiscal discipline. He stated that instead of relying solely on central assistance, states must enhance their financial frameworks.
During a media interaction, the central minister explained that the fiscal deficit is fundamentally the difference between revenue and expenditure. He asserted that it can only be reduced through structural financial reforms, not through political blame games. Shekhawat stressed the importance of addressing both expenditure priorities and revenue collection for long-term solutions.
His comments came in response to Chief Minister Sukhvinder Singh Sukhu’s statement regarding the long-term impact of the 16th Finance Commission report on Himachal Pradesh’s economy, particularly concerning the upcoming 2026-27 budget. Sukhu also mentioned that the termination of RDG is not just a government issue but a matter of the rights of the state’s citizens. He expressed readiness to meet with Prime Minister Narendra Modi alongside BJP MPs and MLAs, believing that once the RDG provision is abolished, it would be challenging to reclaim the rights of the people.
In response, Minister Shekhawat clarified that RDG has always been viewed as a temporary and transitional aid mechanism. He noted that it was first implemented based on recommendations from previous finance commissions to assist states facing financial crises in managing short-term deficits. He firmly stated that it was never intended to be a permanent entitlement.
He explained that successive finance commissions have cautiously advanced this arrangement. Notably, during the tenure of the 15th Finance Commission, RDG assistance was made available at unprecedented levels to help states recover during the COVID-19 pandemic, aiding them in maintaining economic stability during that challenging period.