Amid intensifying political exchanges over the proposed withdrawal of the Revenue Deficit Grant, BJP leaders have been targeting Chief Minister Sukhvinder Singh Sukhu, accusing him of failing to safeguard Himachal Pradesh’s financial interests and mismanaging the state’s economy. The issue has triggered a fresh confrontation between the ruling Congress and the opposition BJP, with the grant’s discontinuation likely to significantly impact the state’s finances.
Responding to the criticism after returning to Shimla from New Delhi, Chief Minister Sukhu said that instead of targeting him, BJP leaders should approach the Prime Minister to seek reinstatement of the Revenue Deficit Grant. He stated that the abolition of the grant would deprive Himachal Pradesh of nearly ₹10,000 crore annually between 2026 and 2031. “If BJP leaders are genuinely concerned about the state, they should meet the Prime Minister and demand continuation of the Revenue Deficit Grant. I have repeatedly appealed for a united stand, but they are indulging in politics,” he said.
The Chief Minister said that the Revenue Deficit Grant is a constitutional provision under Article 275(1), aimed at supporting states with structural financial disadvantages. He stressed that small and hilly states like Himachal Pradesh require continued financial support to maintain essential services and development works.
Sharing details of his meeting with former Union Finance Minister and senior Congress leader P. Chidambaram in New Delhi, Sukhu said he apprised him of the state’s concerns regarding the recommendations of the 16th Finance Commission and their potential impact. He added that Chidambaram assured him that he would examine the issue and requested detailed documentation to formally take up the matter.
Sukhu also stated that the present government inherited a debt burden of ₹75,000 crore and outstanding liabilities of ₹10,000 crore in salary and pension arrears from the previous BJP regime. Despite these constraints, he claimed that his government has generated additional revenue of ₹3,800 crore over the past three years through anti-corruption measures and financial reforms.
Drawing a comparison with the previous government’s tenure, the Chief Minister said that during five years of BJP rule, the state received substantial central assistance, including Revenue Deficit Grant, GST compensation and interim grants. He questioned the utilisation of those funds and alleged that had loans been repaid prudently, the state would not be facing financial stress today.
Reiterating his commitment to fiscal discipline, Sukhu said his government has adopted austerity measures, rationalised administrative posts and curtailed unproductive expenditure. He maintained that protecting the financial rights of Himachal Pradesh remains his government’s priority and vowed to continue pursuing the Revenue Deficit Grant issue in the larger interest of the state.
