Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu meets Union Finance Minister Nirmala Sitharaman in New Delhi on Monday. | Photo Credit: The Hindu Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday (March 2, 2026) sought a special financial package from the Centre to cover the State’s revenue deficit for the financial year 2026-27. During a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi, Mr. Sukhu claimed that the discontinuation of the Revenue Deficit Grant (RDG) would have a far-reaching adverse impact on the State’s financial health. “Himachal Pradesh cannot be compared with other States whose RDG has been discontinued. The RDG contribution for the State was approximately 12.7%, the second highest after Nagaland. Big States can withstand the discontinuation (of RDG), but the economy of Himachal Pradesh can’t,” he said, adding that assessing all States on a single yardstick was neither healthy nor transparent. The Chief Minister said, “The move undermines the spirit of cooperative federalism”. He stated that Article 275(1) of the Constitution allows such grants to the State that cannot bridge the gap between their revenue receipts and expenditure. He added that this was the first time that the Finance Commission had ignored the developmental needs of small hill States. Mr. Sukhu also requested the Union Finance Minister to constitute a committee to assess the economic challenges faced by hill States and recommend corrective measures. In a statement, he said the State has taken several steps over the past two to three years to improve its fiscal position, including reducing expenditure, avoiding off-budget borrowings, and raising about ₹600 crore annually through various cesses. “However, the State suffered revenue losses due to (the implementation of) GST. Despite raising tax rates wherever feasible and rationalising subsidies, the gap in revenue deficit could not be bridged,” he added. Published – March 02, 2026 04:21 pm IST Share this: Click to share on WhatsApp (Opens in new window) WhatsApp Click to share on Facebook (Opens in new window) Facebook Click to share on Threads (Opens in new window) Threads Click to share on X (Opens in new window) X Click to share on Telegram (Opens in new window) Telegram Click to share on LinkedIn (Opens in new window) LinkedIn Click to share on Pinterest (Opens in new window) Pinterest Click to email a link to a friend (Opens in new window) Email More Click to print (Opens in new window) Print Click to share on Reddit (Opens in new window) Reddit Click to share on Tumblr (Opens in new window) Tumblr Click to share on Pocket (Opens in new window) Pocket Click to share on Mastodon (Opens in new window) Mastodon Click to share on Nextdoor (Opens in new window) Nextdoor Click to share on Bluesky (Opens in new window) Bluesky Like this:Like Loading... Post navigation Stock markets suffer major meltdown as West Asia crisis intensifies; Sensex, Nifty tumble over 1% Israel-Iran conflict: Disruption of West Asia flights via Kochi airport enters third day; taxi drivers bear brunt of cancellations