Himachal Pradesh's Fight for Financial Stability

Chief Minister Sukhvinder Singh is advocating for special central assistance to address Himachal Pradesh's revenue deficit for 2026-27. Meeting with Union Finance Minister Nirmala Sitharaman, he highlighted that stopping the Revenue Deficit Grant harms the state. Singh urged a committee for better assessment and remedial solutions.

Chief Minister Sukhvinder Singh on Monday sought crucial assistance from the central government to help Himachal Pradesh address its revenue shortfall for the financial year 2026-27.

During his meeting with Union Finance Minister Nirmala Sitharaman in New Delhi, Singh emphasized that discontinuing the Revenue Deficit Grant (RDG) would severely impact the state's fiscal health. He argued that Himachal Pradesh, which has the second-highest RDG contribution in the country after Nagaland, cannot be assessed under the same criteria as other states whose grants have been cut.

Singh criticized the cessation of RDG as contrary to cooperative federalism and urged for a committee to evaluate hill states' economies, highlighting challenges such as GST-related revenue losses. Sitharaman assured him of a sympathetic review of the state's appeals.