Shimla: Amid noisy scenes and repeated disruptions by opposition legislators, the Himachal Pradesh Assembly on Wednesday passed a resolution recommending the restoration of the Revenue Deficit Grant (RDG) by voice vote. Chief Minister Sukhvinder Singh Sukhu warned in the House that if the RDG is not restored, the state budget will face a 15 per cent cut.
The resolution was brought under Rule 102 by Parliamentary Affairs Minister Harsh Vardhan Chauhan during the first phase of the budget session. The debate turned heated as the Chief Minister presented comparative figures of central assistance received during the previous BJP regime and the current Congress government, drawing sharp protests from the opposition.
BJP MLAs stormed into the well of the House and sat on the floor for nearly 45 minutes. The Speaker had to adjourn proceedings for 10 minutes as the ruckus continued. Even after the House resumed at 5:35 pm, BJP members again entered the well while the Chief Minister was replying to the discussion.
CM Questions BJP’s Stand
During his response, Sukhu read out statements made by Leader of the Opposition Jairam Thakur before the 15th and 16th Finance Commissions. He said that when Jairam Thakur was Chief Minister, he had strongly argued in favour of Revenue Deficit Grant and sought more central funds, citing higher development expenditure in hill states.
“Only 28 paise out of one rupee is spent on development projects in Himachal due to geographical constraints. You understood the state’s interests then. Why are you not supporting Revenue Deficit Grant restoration now? Who is pressuring the opposition?” Sukhu asked.
He said the state government met Union Finance Minister Nirmala Sitharaman and 16th Finance Commission Chairman Arvind Panagariya four times before the Union Budget, seeking continuation of Revenue Deficit Grant from 2026 to 2031. “We were assured that losses due to tapering of RDG would be considered, but it did not happen,” he said.
‘RDG Crucial Since 1952’
Sukhu said RDG, available to Himachal since 1952, is vital for sustaining development works in the hill state. “If the opposition speaks in favour of Revenue Deficit Grant, I will end my speech here,” he remarked during the debate.
He said that if the grant is not restored, the state will be forced to curtail expenditure by 15 per cent, which would directly impact welfare and development schemes.
BJP Accused of ‘Plundering’ State Resources
Launching a sharp attack on the previous BJP government, the Chief Minister alleged that state resources were misused to benefit select interests. He claimed that 5,000 bighas of land were leased for just ₹1 crore and that projects like the Sunni and Luhri power projects were sold.
Sukhu said that while the previous government received ₹70,000 crore in Revenue Deficit Grant and GST compensation, the current government has received only ₹17,000 crore. He added that after June 2022, the state suffered a loss of ₹18,239 crore due to GST compensation ending.
“In five years, the previous government earned ₹55,564 crore from its own resources. In three years, our government has earned ₹50,030 crore. Despite reduced central support, we are continuing welfare schemes and have implemented the Old Pension Scheme (OPS),” he said.
The Chief Minister alleged that freebies worth ₹5,000 crore were distributed in the last six months of the BJP’s tenure and that more than 600 institutions were opened without adequate staff or students. He also referred to alleged irregularities in liquor contracts and exam paper leaks in the Subordinate Selection Commission and police recruitment.
He said the present government reviewed such measures and generated ₹150 crore in revenue in one year, compared to ₹160 crore generated in five years by the previous regime.
Despite the opposition protest, the resolution was passed and will now be sent to the central government for consideration. The issue of the Revenue Deficit Grant is expected to remain a major political flashpoint in the ongoing budget session.
