Shimla, Feb 1 (PTI) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Sunday expressed disappointment over the Union Budget 2026-27, terming it anti-poor and anti-farmer, and said it ignored the interests of key sections of society as well as concerns of the hill state.
Sukhu said Finance Minister Nirmala Sitharaman has completely overlooked Himachal Pradesh’s priorities in the Budget.
He also raised serious concerns over the recently tabled 16th Finance Commission Report for the period 2026-31, particularly its failure to provide meaningful Revenue Deficit Grants (RDGs) to the state despite repeated representations, detailed memoranda and technical submissions.
Sukhu said Article 275(1) of the Constitution provides for state-specific grants from the Union government, also known as RDGs.
“From 1952 up to the 15th Finance Commission, these grants were regularly provided by the Centre to the states. However, for the first time, the 16th Finance Commission has discontinued this grant,” he said.
“It is sad that this omission overlooks structural fiscal handicaps, including high forest and ecological cover of about 67 per cent, higher per-capita cost of service delivery in mountainous terrain and repeated natural disasters causing losses exceeding Rs 15,000 crore in recent years,” he said.
The chief minister said the state had expected targeted support for hill-specific priorities such as hydropower development, eco-tourism, road and rail connectivity and compensation for revenue losses arising from GST implementation.
“The absence of adequate RDGs will constrain Himachal Pradesh’s ability to deliver essential public services, maintain fiscal sustainability and invest in future growth, potentially forcing difficult choices between service delivery and increased indebtedness,” he said.
The Budget failed to respond to the critical issues confronting the nation, particularly unemployment, poverty and escalating prices, he said.
“Apple growers of Himachal Pradesh, who make a vital contribution to the state’s economy of around Rs 5,000 crore and support thousands of families, have received no recognition in the Union Budget,” said the chief minister.
The Budget also lacked substantive measures to address persistent challenges in the agriculture sector, including inadequate support prices and insufficient investment in advanced farming practices, infrastructure and modernisation.
“Himachal Pradesh, like several other states, continues to face difficulties as the Budget appears to favour the wealthy over common Indian citizens,” he said.
Sukhu further said the Budget had ignored the long-pending demand for expansion of the rail network in Himachal Pradesh, with no allocation made for key projects such as the Bhanupali-Bilaspur and Baddi-Chandigarh lines. PTI COR RHL
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