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State is heading towards ‘financial emergency’: Himachal LoP

BJP leader pointed out that the budget size has been reduced by around 3,500 crore compared to the previous year, while claiming that the overall outlay has remained nearly stagnant since the first budget of the present government

Published on: Mar 22, 2026, 04:04:00 IST
By , Shimla
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Leader of opposition and former chief minister (CM) Jai Ram Thakur, warning of serious financial implications said that the state is moving towards a “financial emergency”.

Himachal Pradesh leader of Opposition Jai Ram Thakur (File)
Himachal Pradesh leader of Opposition Jai Ram Thakur (File)

“You cannot cut budgetary allocations like this without declaring a financial emergency. Himachal is heading in that direction,” he said.

BJP leader pointed out that the budget size has been reduced by around 3,500 crore compared to the previous year, while claiming that the overall outlay has remained nearly stagnant since the first budget of the present government.

“The first budget of this government was around 53,000 crore, and even the fourth budget is almost at the same level. This reflects a lack of growth vision,” he said.

Criticising the deferment of salaries, the CM said, “This deferment is merely a time-pass exercise. It does not address the real financial issues,” he said.

“This budget has disappointed every section of society. We will raise these issues at the appropriate platform,” he added.

Terming the budget as “directionless”, Jai Ram said, “This budget is completely directionless. I have seen 29 budgets here, but this one has demeaned the dignity of the House,” he said.

Not a financial emergency, but a difficult phase: Pathania

The Himachal Pradesh assembly speaker Kuldeep Singh Pathania on Saturday said the state is going through a difficult economic phase following the discontinuation of the RDG, but clarified that the situation does not amount to a “financial emergency”. “I do not think the state is in an emergency situation. It is a difficult time, and we will face it together,” he said.

Referring to the broader economic situation, the Speaker said the state has been impacted significantly after the closure of RDG and called for collective responsibility among all stakeholders. “The state is passing through a difficult economic situation. After the RDG was stopped, it has had a major impact. All of us MLAs, ministers, officials have a responsibility to work in the interest of Himachal Pradesh,” he said.

“If salary deferment has been proposed, it is a welcome move. At the same time, the interests of lower-level workers like Class III, Class IV, ASHA and Anganwadi workers must be protected,” he added.