Himachal Pradesh News
Himachal Pradesh CM Sukhvinder Singh Sukhu Targets Jai Ram Thakur Over Rising Debt, RDG Row
In a fresh political face-off in Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu has strongly criticised former Chief Minister and Leader of Opposition Jai Ram Thakur, accusing the previous BJP government of financial mismanagement and improper utilisation of central funds.
In a fresh political face-off in Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu has strongly criticised former Chief Minister and Leader of Opposition Jai Ram Thakur, accusing the previous BJP government of financial mismanagement and improper utilisation of central funds.
Speaking to reporters after returning from Delhi, Sukhu said his government inherited a debt of nearly ₹76,680 crore — a figure he described as alarming for a small hill state with limited revenue resources. According to him, when Jai Ram Thakur assumed office, the state’s debt was around ₹46,000 crore, but it increased significantly during his tenure.
The RDG and GST Compensation Debate
At the centre of the controversy is the Revenue Deficit Grant (RDG) provided by the Centre. Sukhu claimed that the previous government received nearly ₹54,000 crore under RDG, along with approximately ₹16,000 crore as GST compensation cess — totaling close to ₹70,000 crore in central assistance.
He questioned why, despite such substantial support, the state’s liabilities continued to mount instead of easing. “A portion of this financial assistance could have been used to reduce the growing debt burden,” Sukhu remarked, suggesting missed opportunities for fiscal consolidation.
In comparison, Sukhu stated that his Congress-led government has received only about ₹17,000 crore in RDG so far, yet has prioritised fiscal discipline and clearing long-pending dues. He claimed that arrears of employees above 70 years of age have been cleared, while the previous regime allegedly left unpaid liabilities worth nearly ₹10,000 crore.
Why RDG Matters for Himachal
For a hill state like Himachal Pradesh, the Revenue Deficit Grant is not just financial aid — it acts as a lifeline. With geographical constraints limiting large-scale industrial growth and revenue generation, the gap between income and expenditure remains structurally high.
Sukhu expressed concern over reports suggesting the possible discontinuation of RDG for the state. He stressed that the grant is meant for the welfare of Himachal’s people, not for any political party. He also pointed out that Jai Ram Thakur had earlier presented the state’s case before both the 15th and 16th Finance Commissions but is now, according to him, reluctant to actively support the continuation demand.
Delhi Visit and Political Outreach
During his recent Delhi visit, Sukhu said he briefed senior Congress leaders, including party president Mallikarjun Kharge and leader Rahul Gandhi, about the financial challenges facing the state if RDG support is curtailed. Although he could not meet the Union Finance Minister due to her absence, he indicated that the state government will soon formulate a strategy to safeguard Himachal’s financial interests.
Himachal Sadan Raid Controversy
On a separate note, the Chief Minister criticised a reported raid by Delhi Police at Himachal Sadan in the national capital, terming it “unfortunate” and alleging it was conducted without a warrant while he was present there. He defended the practice of facilitating bookings for Youth Congress workers, journalists, and ordinary citizens, stating that it was not improper.
Sukhu also condemned the arrest of protesters, emphasising that peaceful demonstrations are part of democratic traditions and should not be met with excessive force.
The Bigger Picture
The ongoing war of words between Sukhvinder Singh Sukhu and Jai Ram Thakur reflects more than a political rivalry — it highlights deeper concerns about fiscal sustainability in hill states dependent on central assistance. As uncertainty looms over the future of the Revenue Deficit Grant, the financial roadmap of Himachal Pradesh could become a key political and policy battleground in the coming months.
For the people of Himachal, the real question remains: can financial discipline and central cooperation go hand in hand to secure the state’s economic future?
