Himachal CM presents Rs 54,928 Cr budget for 2026-27, flags RDG hit

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday presented Rs54,928-crore budget for the financial year 2026-27 in the state assembly. Sukhu, who was presenting his fourth budget, started his speech by saying that the discontinuation of the revenue deficit grant (RDG) has impacted the annual budget and accused the BJP for not supporting the state's interests.The chief minister, who holds the finance portfolio, announced a provision of Rs500 crore to complete pending works, adding that a list of 300 incomplete works has been prepared. The size of the state budget for the upcoming financial year is about Rs4,000 crore less from last year's Rs58,514 crore. He further said a comparison of Himachal Pradesh with Uttarakhand and Assam is wrong as Himachal is a hill state with limited resources like water and forest. "Himachal is the lung of north India and should get a green bonus but instead the revenue deficit grant to the state has been discontinued," he said. The Chief Minister said, for the year 2026, a plantation target has been set across 8,000 acres. Priority will be given to planting fruit-bearing trees. 

Shimla, Himachal Pradesh: Chief Minister Sukhvinder Singh Sukhu says, "For the year 2026, a plantation target has been set across 8,000 acres. Priority will be given to planting fruit-bearing trees. The Rajiv Gandhi Forest Conservation Scheme, launched last year, has achieved… pic.twitter.com/C0KZiH1Qpe

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Sukhu announced plans to reduce the size of the year 2026-27 from Rs 58,400 crore, citing mounting fiscal stress following the discontinuation of Revenue Deficit Grant (RDG) by the Centre. Discontinuation of the RDG would result in loss of Rs8,105 crore annually, he said.Sukhu asserted that despite fiscal constraints, the government would not roll back the Old Pension Scheme (OPS) or the pension benefits extended to women, terming them key policy commitments. "Our manifesto is our policy document, and we stand by it," he said.On the power sector, Sukhu said the state produces around 13,000 MW of electricity but is not receiving the due 12 per cent royalty in power. He also alleged that hydropower projects are not being handed over to the state after completion, contrary to international norms.