Himachal Pradesh Budget Session 2026 : Stormy Scenes in Himachal Pradesh Assembly Over Revenue Deficit Grant Cut

The proposed discontinuation of the Revenue Deficit Grant (RDG) to Himachal Pradesh sparked a stormy debate in the state Assembly, with Chief Minister Sukhvinder Singh Sukhu and Leader of Opposition Jai Ram Thakur trading sharp accusations over mounting debt and the Centre’s fiscal approach.

The debate soon turned into a face-off over financial management, with both sides blaming each other for pushing the state’s debt beyond Rs 1 lakh crore.

BJP Defends Past Record

Thakur defended the previous BJP government, claiming it had repaid 95 per cent of loans raised during its tenure, compared to 60 per cent repayment under Congress governments.

He also accused the Congress of criticising Prime Minister Narendra Modi despite the Centre providing RDG support during BJP rule.

Congress Counters With Fiscal Concerns

Deputy Chief Minister Mukesh Agnihotri challenged the BJP to clarify whether it would back the state’s demand for continuation of the grant.

He alleged that every visit by the LoP to Delhi was aimed at stalling financial assistance to Himachal. Referring to remarks suggesting early Assembly elections following the RDG decision, Agnihotri said such statements revealed the Opposition’s political intent.

He argued that the earlier discontinuation of GST compensation and the proposed halt to RDG reflected a broader trend of weakening smaller and hill states. According to him, larger states had influenced the decision, leaving states like Himachal to bear the brunt.

Calling the potential loss of Rs 55,000 crore a serious setback, he urged all parties to rise above political differences and unite to protect the state’s financial interests.

Wider Political Fallout

Congress legislators accused the Centre of financially “strangulating” the state by imposing borrowing caps that limit development spending. Fatehpur MLA Bhawani Pathania warned that a recent trade agreement could negatively impact apple growers across 22 Assembly segments.

On the other hand, Nachan MLA Vinod Kumar cited figures claiming that Himachal Pradesh had received Rs 89,254 crore from the Modi-led government over the past 12 years, compared to Rs 20,956 crore during 40 years of Congress rule at the Centre.

The heated exchanges in the Assembly highlighted the high political and fiscal stakes surrounding the Revenue Deficit Grant and its implications for Himachal Pradesh’s economic stability and development trajectory.

Read Also : Jai Ram Thakur Blames Himachal Pradesh Govt for Fiscal Crisis Amid RDG Dispute