Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu speaks during the budget session of the State Assembly in Shimla. Source: X/@CMOFFICEHP
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday (21 March 2026) presented a “reduced” state budget with an annual outlay of ₹268-274 crore, claiming that the discontinuation of the central government’s revenue deficit grant would result in an average loss of ₹8,105 crore annually. ₹58,514 crore in 2025–26.
Mr. Sukhu, who holds the finance portfolio, presented the state budget during the ongoing budget session of the State Assembly in Shimla and noted that from 2020-21 to 2025-26, Himachal has received ₹48,630 crore as RDG. “Now the central government has accepted the recommendations of the 16th Finance Commission. This means that as per the standards of the previous Finance Commission, we will suffer an average loss of ₹ 8,105 crore per year. According to the principle of inflation and time value of money, this grant should have been increased to at least ₹ 10,000 crore in the coming years, but the result of this year is stopped. We are forced to reduce the total budget. In 2025-26, our budget size was ₹ 58,514 crore. ₹ which will be Rs.54,928 crore for the year 2026-27.
Also Read: Himachal Pradesh growth pegged at 8.3% in 2025-26, says Economic Survey
Pointing to the global situation, Mr. Sukhu said: “Thousands of women, children and schoolgirls in Ukraine, Gaza and Iran are being burnt to ashes in this scene of devastation. In this era of war madness, sensitivity, tolerance, morality and dignity are constantly being violated. The values of life have now turned into short-term agreements and a few years ago we could not have imagined such absolute power as humanity could not even imagine.” “If these conflicts and wars do not end soon, the prices of petrol, diesel and gas will start to skyrocket and we will enter such a period of inflation where it will be very difficult for all of us, especially the poor families, to survive.”
Noting that the state is currently in dire financial straits, Mr. Sukhu said that the situation did not arise suddenly but was a result of poor financial management and wrong priorities by the previous government and along with that, the shutdown of the RDG has put additional pressure on the state. “Under such circumstances, to meet this challenge, we will all have to contribute together. In this spirit, the government has decided that 50% of the salary of the Chief Minister, 30% of the salary of the Deputy Speaker and members of the Council of Ministers, and 20% of the salary of the MLA will be temporarily deferred for the next six months. In addition, 20% of the salary of all Deputy Speakers, Deputy Speakers and Politically Appointed Deputy Speakers) will also be temporarily deferred for the same period,” he said.
“The same allowance will also be ensured at the level of senior administrative, police and forest officials. Under this, 30% of the salary of the chief secretary, other chief secretaries and all principal secretaries and 20% of the salary of secretaries and all department heads will be temporarily deferred,” the chief minister said while detailing the deferrals of other other ranks.
Published – 21 March 2026 12:46 IST
