Himachal Pradesh 2026-27 Budget: Rural Economy in Focus Amid Financial Pressures

Himachal Pradesh Chief Minister, Sukhvinder Singh Sukhu, presented a reduced budget of Rs 54,928 crore for 2026-27, focusing on the rural economy. The discontinuation of the revenue deficit grant has caused notable financial strain, with opposition protests erupting in the assembly. Measures include salary deferrals and emphasis on tourism and agriculture.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has unveiled a Rs 54,928-crore budget for 2026-27, with significant emphasis placed on boosting the rural economy. The budget announcement was marred by protests from opposition BJP members over Sukhu's critique of the cessation of the revenue deficit grant, which causes annual fiscal shortfalls.

This discontinuation has led to severe financial difficulties in the state, compelling the Chief Minister to defer salaries for various governmental positions by up to 50%. Additionally, subsidies and development plans for tourism, agriculture, and infrastructure were highlighted as measures to bolster the economy.

Significant tourism projects, including an aerocity in Kangra and 50 eco-tourism sites, were announced amidst a broader strategy to sustain growth. These efforts coincide with plans to enhance agricultural production through initiatives like increased Minimum Support Prices and seed villages.

(With inputs from agencies.)