In A First, Himachal's Budget Slashed By Rs 3,586 Crore Total Outlay Rs 54,928 Crore

(MENAFN- IANS) Shimla, March 21 (IANS) In a first in the state’s history, Himachal Pradesh has slashed its budget size by Rs 3,586 crore with the outlay down to Rs 54,928 crore for 2026-27 from the current fiscal of Rs 58,514 crore.

Justifying the decision, Chief Minister Sukhvinder Singh Sukhu, in his Budget speech, informed the Assembly that the decision to cut the outlay was to tackle a mounting debt trap left by the previous BJP regime. He said the time to take populist measures was over, as there was a need to cut down on unproductive expenditure.

He said people of the hills were tough and resilient and would face a financial crisis bravely.

Sukhu, who holds the Finance portfolio, said this was the first time since 1952 that the Budget was being presented in the absence of the Revenue Deficit Grant (RDG) by the Centre.

Saying the poorest of the poor would be identified for their upliftment, the Chief Minister said,“The state’s BPL list will especially include names of the poorest of poor families. Presently, there are 2.65 lakh BPL families in the state, and now, the government is identifying the poorest of the poor to uplift them. One lakh deprived poorest of poor families to be helped under Mukhya Mantri Apna Sukhi Parivar scheme.

“These families will get 300 units of free power. As many as 27,000 families out of these who do not have a pucca house will be helped to construct houses, Rs 1,500 to be given to all women in these families as part of the fulfilment of the guarantee.”

Ruckus prevailed in the House as CM Sukhu blamed the discontinuation of the Revenue Deficit Grant (RDG) and the end of GST compensation for the state’s financial distress.

He accused the BJP of pushing Himachal into a debt trap, stating that the crisis could have been avoided had they settled outstanding loans.

When the CM said those who did not support the state on the RDG had betrayed Himachal’s interests, BJP legislators, led by Leader of Opposition and former chief minister Jai Ram Thakur, stormed into the Well.

After a 20-minute pandemonium, the CM resumed the speech. Sukhu, who presented his fourth budget, said,“It’s unfair and an injustice with the people of Himachal to stop the grant of RDG to the state.” In the fishery sector, the Chief Minister announced a minimum support price (MSP) for fish procurement at Rs 100 per kg under the Mukhya Mantri Machuara Sahayta scheme.

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