Shimla, February 9: The Chief Minister of Himachal Pradesh, Sukhu, stated on Sunday that the 16th Finance Commission report will have a long-term impact on the state’s economy, which will be evident in the 2026-27 budget.
The Chief Minister made these remarks following a presentation by the finance department regarding the state’s financial status and the implications of ending the Revenue Deficit Grant (RDG). He emphasized that the termination of the RDG is not just a governmental issue but a matter concerning the rights of the people of the state.
CM Sukhu said, “We are prepared to meet the Prime Minister in Delhi regarding this issue, and we invite BJP MPs and MLAs to join us. Once the RDG system is abolished, it will be extremely difficult to reclaim the rights of the people.”
He noted that BJP legislators were invited to the presentation but did not attend. The Chief Minister explained that the RDG has been terminated for 17 states across the country, but Himachal Pradesh has been the most affected. Approximately 12.7 percent of the state’s total budget came from the RDG, the second-largest ratio in the country.
Sukhu pointed out that after the implementation of GST, the state’s tax collection growth rate has dropped to about 8 percent, down from 13 to 14 percent before GST. He stated that despite being a producing state, GST is a consumer-based tax that has harmed Himachal’s economy. Additionally, the state’s capacity to impose taxes has been limited post-GST.
The Chief Minister urged the central government to ensure at least 50 percent royalty on power projects and to transfer projects that have completed 40 years back to the state. He mentioned that nearly ₹4,500 crore owed by the Bhakra Beas Management Board (BBMB) has not been paid since 2012, despite a Supreme Court ruling on the matter.
He also noted that the lease period for the Shanan Power Project has expired, and legal action is being pursued against the Punjab government to reclaim it.
The Chief Minister affirmed that the state government is committed to resource mobilization. The government has generated ₹26,683 crore in revenue from its resources, but this is insufficient due to limited revenue sources, primarily rivers, forests, and tourism.
He assured the people of the state, “I promise that every welfare scheme will be implemented, resources will be enhanced, and the fight for our legitimate rights will continue.”
