Shimla: The Himachal Pradesh Budget 2026-27 has triggered a political confrontation, with the BJP cornering the Congress government over what it described as rising fiscal stress marked by cuts, debt, and salary deferments.
Himachal BJP president Rajeev Bindal termed the ₹54,928-crore budget a “back gear budget,” alleging that the nearly ₹4,000-crore reduction compared to last year will slow down development and impact welfare works across the state.
Bindal said such a reduction in the budget size is unprecedented and reflects poor financial management. He further alleged that the government has relied heavily on repackaging centrally sponsored schemes in sectors like agriculture, horticulture, and fisheries, without introducing substantial new initiatives at the state level.
Targeting the Congress government’s political narrative, he said the state has been blaming the Centre for its failures, despite significant support under Prime Minister Narendra Modi. He also questioned the discontinuation of the Revenue Deficit Grant (RDG), which the state government claims has impacted finances, but said the response from the state lacks planning and direction.
Rajya Sabha MP Harsh Mahajan said the reduced budget size clearly indicates that Himachal’s economy is under stress. He pointed out that the government has been forced to defer salaries, which reflects the seriousness of the financial crisis. “This budget is not a document of development, but of financial bankruptcy,” he said.
Echoing similar concerns, Rajya Sabha MP Sikander Kumar said the deferment of salaries ranging from 3 to 50 per cent is clear proof of the deteriorating economic condition. He questioned the government’s claim of fulfilling its guarantees, stating that there has been little visible implementation on the ground.
Lok Sabha MP Suresh Kashyap alleged that announcements related to Minimum Support Price (MSP) and farmer welfare schemes exist largely on paper. He claimed that farmers are not receiving actual benefits and termed measures like free electricity for poor families as politically motivated announcements.
Union Minister Anurag Thakur accused the state government of pushing Himachal Pradesh into a debt trap, forcing it to resort to steps such as salary deferments. He said the budget lacks a concrete economic roadmap and is driven more by announcements than execution. “This is not a budget, but a management of failure,” he remarked.
Lok Sabha MP Rajiv Bhardwaj also questioned the government’s fiscal priorities, stating that while salaries are being deferred in the name of discipline, there is no clarity on expenditure planning.
Adding to the criticism, MP Kangana Ranaut said promises made to women and youth remain largely unfulfilled. She alleged that instead of generating employment, the government is relying on announcements and allowances. “This budget reflects disappointment rather than hope,” she said.
The BJP leaders argued that the budget reflects deep financial strain in Himachal Pradesh, highlighted by rising debt, reduced allocations, and austerity measures like salary deferments. They maintained that despite a series of announcements, there is little evidence of implementation on the ground.
The Congress government, however, has defended the budget, stating that it focuses on fiscal discipline, welfare measures, and sustainable development despite reduced central support and limited resources. Congress leader Kuldeep Singh Rathore defended the budget, calling it commendable given the severe economic crisis and the setback caused by the discontinuation of the Revenue Deficit Grant by the Centre. He said the budget gives special attention to all sections of society, with a strong focus on strengthening the rural economy, which is essential for the state’s overall development.
Rathore also welcomed the decision of Chief Minister Sukhvinder Singh Sukhu to defer salaries of ministers and MLAs, including his own, stating that it reflects fiscal discipline and sends a positive message that the government is prioritising public interest during difficult times. He expressed confidence that the budget will help bring economic stability to Himachal Pradesh and set a new direction for its development.
