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Himachal Pradesh RDG Controversy: BJP Faces Heat After Walkout from All-Party Meeting

The Bharatiya Janata Party (BJP) finds itself in a political bind in Himachal Pradesh after walking out of an all-party meeting convened to discuss the discontinuation of the Revenue Deficit Grant (RDG), recommended by the Sixteenth Finance Commission.

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BJP on a sticky wicket on Himachal RDG issue after walking out from all-party meeting The BJP’s walkout from the all-party meeting after dithering to take a clear stand on extending support to the state government on the issue of the discontinuation of the Revenue Deficit Grant (RDG) has placed it on a sticky wicket in Himachal. The BJP is finding it very difficult to defend the discontinuation of the RDG and clearly spell out its stand on the issue, which is gaining political hues. Incidentally, the BJP had also skipped the presentation on the state’s finances made by the Finance Department on February 8, though all Opposition MLAs had been invited. The BJP’s walkout on Friday after failing to clarify its stand on the issue of the impact of the discontinuation of the RDG, as recommended by the 16th Finance Commission, has puts it in a quandary. In fact, its walkout from the meeting has defeated the very purpose for which it had been convened as it has 28 MLAs in a House of 68. Though BJP leaders, including state party president Rajeev Bindal and Leader of the Opposition Jai Ram Thakur along with senior MLAs, did arrive to attend the meeting, their abrupt departure has invited criticism. “We are caught in a catch 22 situation as by agreeing to stand with the state government on the RDG issue we will be seen going against our own BJP government at the Centre. If we do not support the demand for the continuation of the RDG, we will be labelled as anti-Himachal,” admitted a BJP legislator. The BJP was caught in a similar situation when it faced the dilemma of supporting a resolution passed by the Himachal Vidhan Sabha, seeking liberal financial assistance from the Central Government in the wake of the monsoon disaster in 2023 when Kullu, Shimla and Chamba districts suffered widespread destruction and loss of lives. Till date, the BJP has no answers for its stand as it had left the House before the resolution was passed. The Congress has also been trying to build public opinion and seek sympathy on the ground that the Central Government has been meting out a step-motherly treatment to Himachal having a non-BJP government. The state is yet to receive the grant of Rs 1,500 crore announced by Prime Minister Narendra Modi during his visit to Mandi after the monsoon disaster on September 9, 2025. The BJP may have managed to evade spelling out its stand on joining hands with the state government in the all-party meeting but the Budget session of the Vidhan Sabha, commencing on February 16, will once again bring the spotlight on its position on the RDG issue. The political fallout of the BJP not supporting the RDG demand can make it tough for the opposition party to defend its stand, notwithstanding its argument that the Central Government has given liberal assistance to Himachal under various schemes for road, bridges, water and power supply projects and other welfare measures. Chief Minister Sukhvinder Singh Sukhu, on the other hand, has clearly said that the RDG issue does not concern the state government, the Congress or the BJP but every citizen of the state. He has sought cooperation from all political parties, especially the BJP, and said that he is willing to meet the Prime Minister under the leadership of BJP leaders to seek the continuation of the RDG. The BJP’s argument that Himachal is one of the 17 states where the RDG is being discontinued is not getting a positive response from the public, as the hill state has limited revenue generation sectors and severe geographical constraints and hence cannot be equated with other states. Moreover, the devastation caused by unprecedented monsoonal heavy rains in 2023 and 2025 has burdened the Himachal Government with the arduous task of undertaking massive restoration work, especially of roads and bridges. Himachal has so far been provided a little over Rs 2,000 crore against the Rs 9000-crore Post Disaster Need Assessment (PDNA) sent to the Central Government. The catastrophe during the monsoon last year had wiped out villages in the Seraj area of Mandi and claimed several lives but still Himachal has not been extended a special financial assistance, other than routine funds that are allocated to every state for disaster management. It remains to be seen whether the Central Government will accede to the demand of Himachal to either continue the RDG or provide financial assistance in some other form but the ground is set for a political battle on the issue.
Himachal Pradesh RDG Controversy: BJP Faces Heat After Walkout from All-Party Meeting
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The Bharatiya Janata Party (BJP) finds itself in a political bind in Himachal Pradesh after walking out of an all-party meeting convened to discuss the discontinuation of the Revenue Deficit Grant (RDG), recommended by the Sixteenth Finance Commission.

The walkout has placed the BJP on a sticky wicket, as the party struggles to clearly articulate its position on the RDG issue, which has gained sharp political overtones in the hill state.


BJP’s Dilemma: Centre vs State Sentiment

Senior BJP leaders, including state president Rajeev Bindal and Leader of Opposition Jai Ram Thakur, attended the meeting but left abruptly after failing to clarify whether the party would support the state government’s demand for continuation of the RDG.

With 28 MLAs in the 68-member Himachal Pradesh Legislative Assembly, the BJP’s exit undermined the very purpose of the meeting.

A BJP legislator admitted the party is caught in a “catch-22” situation: supporting the state’s demand could be seen as opposing the BJP-led Central Government, while opposing it may invite accusations of being “anti-Himachal”.


Congress Sharpens Attack

The ruling Congress has seized the opportunity to accuse the Centre of “step-motherly treatment” towards Himachal Pradesh because it is governed by a non-BJP party.

Chief Minister Sukhvinder Singh Sukhu has asserted that the RDG issue concerns every citizen of the state and not just political parties. He has offered to meet Prime Minister Narendra Modi along with BJP leaders to press for continuation of the grant.

The Congress has also flagged the delay in the release of Rs 1,500 crore financial assistance announced by the Prime Minister during his visit to Mandi after the 2025 monsoon disaster.


Financial Strain and Disaster Burden

Himachal Pradesh, which has limited revenue-generation capacity due to geographical constraints, has been heavily impacted by successive monsoon disasters in 2023 and 2025.

The state had submitted a Rs 9,000-crore Post Disaster Need Assessment (PDNA) to the Centre but has so far received a little over Rs 2,000 crore. Large-scale destruction in districts like Mandi, Kullu, Shimla and Chamba has intensified the demand for continued central support.

The BJP’s argument that RDG is being discontinued in 17 states has not resonated strongly with the public, given Himachal’s unique topographical and fiscal challenges.


Budget Session to Rekindle Debate

The issue is expected to dominate the Budget Session of the Himachal Pradesh Legislative Assembly beginning February 16, where the BJP will once again face pressure to clarify its stand.

Political observers say the party’s position on RDG could significantly influence public perception, especially in a state grappling with fiscal stress and post-disaster reconstruction.

Whether the Central Government will reconsider the continuation of the RDG or provide alternative financial assistance remains to be seen, but the stage is set for a heated political showdown in Himachal Pradesh.

Read Also : Himachal CM Sukhvinder Singh Sukhu Criticises BJP for Walking Out of All-Party Meet on Revenue Deficit Grant

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