Despite discontinuation of the Revenue Deficit Grant (RDG), the Himachal Pradesh chief minister (CM) Sukhvinder Singh Sukhu on Saturday assured that there will be no cuts in social schemes, salaries or pensions in the upcoming budget.
“The state government’s upcoming budget scheduled to be presented on March 21 will be a self-reliance budget aimed at the welfare of all sections of society and will not involve any cuts in social schemes, salaries or pensions despite the reduction in RDG”, said CM Sukhu while talking to HT, ahead of a special pre-budget meeting at the state secretariat, in Shimla.
The 16th Finance Commission has recommended discontinuation of the RDG. According to CM, the decision could result in an annual loss of ₹8,000– ₹10,000 crore to the state between 2026 and 2031, making it necessary for the government to strengthen its own revenue resources.
Sukhu said the government has been holding a series of consultations to prepare the budget and ensure the state gradually moves towards financial self-reliance.
“The upcoming budget will not be a cut-based budget. We will take care of every section of society. No social welfare scheme will be stopped and there will be no cut in salaries or pensions of government employees,” the CM said.
{{/usCountry}}“The upcoming budget will not be a cut-based budget. We will take care of every section of society. No social welfare scheme will be stopped and there will be no cut in salaries or pensions of government employees,” the CM said.
{{/usCountry}}Lamenting that despite contributing significantly to the country’s ecological balance, Himachal receives little compensation in return, Sukhu said, “Himachal serves the nation’s ecology worth over ₹90,000 crore every year. If we were allowed to cut forests for commercial purposes, we would not need the RDG at all.”
He added that the state also receives only 12% royalty from hydropower projects set up by central public sector companies such as SJVN, NHPC and NTPC. “If hydropower projects become debt-free and the state is given 50% royalty, Himachal will not need RDG support,” he said.