Himachal Pradesh News
Himachal Pradesh generated ₹26,683 crore in three years despite fiscal stress: CM Sukhvinder Singh Sukhu
Chief Minister Thakur Sukhvinder Singh Sukhu on Saturday said the Himachal Pradesh government has generated ₹26,683 crore from its own resources over the past three years, highlighting the state’s sustained efforts to strengthen its finances despite growing fiscal pressures.
Chief Minister Thakur Sukhvinder Singh Sukhu on Saturday said the Himachal Pradesh government has generated ₹26,683 crore from its own resources over the past three years, highlighting the state’s sustained efforts to strengthen its finances despite growing fiscal pressures.
The Chief Minister was addressing the second day of MLA Priority Meetings for the financial year 2026–27, during which he held detailed consultations with legislators from Kullu, Mandi, Kangra and Shimla districts. The discussions centred on constituency-specific development needs, with MLAs raising priority demands related to road connectivity, bridges, drinking water schemes, and the construction of educational and health institutions.
Expressing concern over the 16th Finance Commission’s decision to discontinue the Revenue Deficit Grant (RDG), Sukhu warned that the move could lead to a cumulative loss of nearly ₹50,000 crore for the hill state. Calling the decision “unjust”, he said the withdrawal of RDG would severely impact development projects, welfare programmes and even the payment of salaries and pensions.
He urged the Centre to restore the RDG and provide special financial assistance, keeping in mind Himachal Pradesh’s difficult terrain, scattered population and higher infrastructure costs.
Providing context, Sukhu said the state had received ₹37,199 crore under the 15th Finance Commission as tapering RDG over five years. The yearly allocation included ₹10,249 crore in 2021–22, ₹9,377 crore in 2022–23, ₹8,057 crore in 2023–24, ₹6,249 crore in 2024–25 and ₹3,257 crore in 2025–26.
Highlighting measures taken to boost revenue, the Chief Minister said the state gained a financial benefit of around ₹401 crore after acquiring ownership of the Wildflower Hall Hotel, which is expected to generate nearly ₹20 crore annually. He also noted that the state’s royalty share from the Karcham-Wangtoo hydel project was increased from 12 per cent to 18 per cent, resulting in an additional ₹150 crore per year.
