Himachal Pradesh News
Union Budget 2026 : RDG Was Only a Temporary Measure, Not Permanent Support: Anurag Thakur Counters Himachal Govt
Responding to Chief Minister Sukhvinder Singh Sukhu’s allegations that the discontinuation of the Revenue Deficit Grant (RDG) amounted to injustice to Himachal Pradesh, BJP MP and former Union Minister Anurag Thakur on Monday said the grant was always meant to be a temporary, transitional arrangement rather than a permanent financial support mechanism.
Responding to Chief Minister Sukhvinder Singh Sukhu’s allegations that the discontinuation of the Revenue Deficit Grant (RDG) amounted to injustice to Himachal Pradesh, BJP MP and former Union Minister Anurag Thakur on Monday said the grant was always meant to be a temporary, transitional arrangement rather than a permanent financial support mechanism.
Thakur said the 16th Finance Commission did not recommend continuation of the RDG after observing a persistent pattern of weak tax collection efforts and high committed expenditure among several recipient states, including Himachal.
He highlighted that Himachal’s share in central tax devolution had increased from 0.83 per cent to 0.91 per cent under the new formula. “The state’s post-devolution receipts have risen from the 2025-26 Budget estimate of around Rs 11,561 crore to nearly Rs 13,949 crore, marking an increase of approximately Rs 2,388 crore. This clearly contradicts the claims that the state has been penalised by the Finance Commission,” Thakur said.
He added that the RDG mechanism introduced by the 15th Finance Commission was front-loaded to help states cope with the financial stress caused by the pandemic. According to him, the grant was explicitly designed as a time-bound measure aimed at bringing states close to zero revenue deficits by 2025-26.
“The 16th Finance Commission reviewed the outcomes and concluded that despite substantial RDG transfers, actual revenue deficits did not align with the expected path because many states failed to strengthen revenue mobilisation or rationalise expenditure,” he said.
Thakur maintained that the real challenge before the state government was to restore fiscal discipline, enhance tax collection efficiency and prioritise productive investments. “That is the path to ensuring sustainable growth and lasting prosperity for Himachal Pradesh,” he added.
