Himachal CM Sukhu warns against scrapping Revenue Deficit Grants, urges cross-party appeal to PM

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said on Sunday (February 8, 2026) that the 16th Finance Commission’s recommendation to scrap Revenue Deficit Grants would severely impact the hill State’s economy in the long term, even as he termed it a “matter of the rights of the people.”

He urged Members of Parliament (MPs) and Members of the Legislative Assembly (MLAs) of the Bharatiya Janata Party (BJP) to join him in meeting Prime Minister Narendra Modi to address the issue.

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“Abolition of RDG is not the issue of a government, but it is a matter of the rights of the people of the State. We are ready to go to New Delhi and meet the Prime Minister along with MPs and MLAs of the BJP to take up this issue. I think once the provision of RDG is gone, it will be difficult to reclaim the rights of the people,” he said in Shimla following a Finance Department presentation on the State’s financial position and the impact of abolishing RDG.

“We had also invited the BJP MLAs to attend the presentation, but unfortunately, they have not come. RDG for 17 States have been scrapped, but Himachal Pradesh is the worst affected, as 12.7% of the budget comes from RDG, which is the second highest in the country,” he said.

The Chief Minister said that already in the post-GST regime, the tax collection growth has come down to around 8%, which was 13% to 14% before the implementation of GST. “Together we have to fight for the people of the State.”

He said the State Government has envisioned making Himachal Pradesh a self-reliant State and earnest efforts have been undertaken to realise this mission. “Since assuming power, the State government has earned a revenue of ₹26,683 crore from its own resources but this income generation was not enough, as we just have river waters and forests as a source of revenue apart from the tourism sector,” he said.

Earlier, during the presentation, it was pointed out that RDG was a constitutional provision under Article 275(1) and it was received by the State till the 15th Finance Commission. It was noted that Himachal Pradesh was formed on the aspiration of the public and not as a financially viable unit and the impact of the recommendations is not confined to the incumbent government but will adversely affect subsequent governments and will be a grave injustice to the people of the State.