Expressing disappointment over the Union Budget 2026-27, Himachal chief minister Sukhvinder Singh Sukhu described it as an anti-poor and anti-farmer budget and stated that it ignores interests of key sections of the society. Describing it as inequitable, the CM said Union finance minister Nirmala Sitharaman completely overlooked the concerns and priorities of Himachal Pradesh.
Sukhu, who also holds the finance portfolio, raised concerns regarding the recently tabled 16th Finance Commission (FC-XVI) Report for the period 2026-31. He voiced strong disappointment over the commission’s “failure” to provide meaningful revenue deficit grants (RDG) for the state despite repeated representations, detailed memoranda and technical submissions. Besides, the Finance Commission has not recommended RDG for small states, including Himachal Pradesh, which he termed as a deeply disappointing decision and termed it as injustice, hurting the sentiments of the people.
The CM said that Article 275(1) of the Constitution provides for state-specific grants (RDG) from the Union government. From 1952 up to the 15th Finance Commission, these grants were regularly provided by the Centre to the states. However, for the first time, the 16th Finance Commission has discontinued this grant, he said.
Sukhu said that under the Fifteenth Finance Commission, Revenue Deficit Grants amounting to approximately ₹37,000 crore were provided.
{{/usCountry}}Sukhu said that under the Fifteenth Finance Commission, Revenue Deficit Grants amounting to approximately ₹37,000 crore were provided.
{{/usCountry}}“It is sad that this omission overlooks structural fiscal handicaps, including high forest and ecological cover of about 67%, higher per-capita cost of service delivery in mountainous terrain and repeated natural disasters causing losses exceeding ₹15,000 crore in recent years, “ he remarked.
He said that Himachal Pradesh had anticipated targeted support for hill-specific priorities such as hydropower development, eco-tourism, road and rail connectivity and compensation for revenue losses arising from GST implementation.
Betrayal state’s interests: Dy CM
Deputy CM Mukesh Agnihotri termed the budget a betrayal of Himachal Pradesh’s interests. He said the budget has been unfair to Himachal Pradesh and has completely ignored the unique geographical and economic conditions of the hill state.
Development oriented: Jai Ram
Leader of Opposition Jai Ram Thakur termed it a comprehensive budget for achieving the goal of ‘Developed India 2047’. He said the announcement of developing ‘eco-trails’ (trekking tracks) under eco-tourism, especially for a hilly state like Himachal Pradesh, is a revolutionary step. “With a 7% growth rate and a record infrastructure investment of ₹12.2 lakh crore, this budget will provide new momentum to key sectors such as IT, semiconductors, and healthcare.”
Special priority for HP, says Sulah MLA
Former speaker and BJP MLA from Sulah assembly constituency Vipin Singh Parmar said the budget presents a clear roadmap to transform the geographical challenges of hill states like Himachal Pradesh into opportunities. “Despite global economic uncertainties, India’s advancement with a robust growth rate of nearly 7% is proof that India’s economy today stands on the strong pillars of policy stability, reforms, and global trust. At such a time, giving special priority to Himachal Pradesh in areas like tourism, agriculture, skill development, environmental conservation, and job creation reflects the Central Government’s sensitive and balanced policy,” he said.