Shimla, March 30
The Himachal Pradesh Assembly on Monday passed the state budget for 2026-27, pegged at Rs 58,830 crore, by a voice vote on the 13th day of the ongoing Budget Session, with Chief Minister Sukhvinder Singh Sukhu indicating that the state may have to raise additional loans while assuring that financial reforms would not burden the common man.
The budget, initially presented at Rs 54,928 crore on March 21, was later revised upward to Rs 58,830 crore before its passage.
Speaking to reporters outside the Assembly, Sukhu said the government had, for the first time, presented a realistic assessment of the state's financial position and accordingly rationalised allocations across sectors.
He said the fiscal situation had been impacted by a sharp decline in Revenue Deficit Grant (RDG), which dropped from around Rs 6,200 crore in 2024-25 to nearly Rs 3,200 crore in 2025-26 and has now ceased.
"Despite a sharp reduction in grants, we maintained financial discipline and ensured smooth functioning of the state's finances," the Chief Minister said, adding that policy reforms initiated over the past three years were aimed at making Himachal Pradesh self-reliant.
Sukhu said the state's entitlement under Article 275 had not been fully realised, further straining finances. He stressed that the government was focusing on plugging leakages and curbing corruption.
"Funds that were earlier being misused have been stopped. We are closing backdoor channels of corruption and opening legitimate financial avenues," he said.
On concerns over delayed salaries and payments, the Chief Minister urged patience, saying a series of finance-related meetings over the next few days would address liquidity issues. "Give us some time. In the next three to four months, the situation will stabilise," he said.
Addressing rising debt reported to have crossed ₹1 lakh crore, Sukhu said borrowing was a continuous process linked to the Gross State Domestic Product (GSDP) and governed by central norms.
"Loans are taken within permissible limits and linked to reforms. We will ensure that reforms are implemented without putting any burden on the common man or the middle class," he said.
He added that while capital expenditure had been moderated in the current budget, efforts would be made to mobilise higher resources for infrastructure spending in the coming period. Revenue expenditure, particularly on salaries and pensions, remained a major component, he noted.
Reiterating his commitment to pensioners, Sukhu said the government would ensure payments within the available fiscal space. "Pensioners are our elders and deserve respect. We will make every effort to meet their dues," he said.
On taxation of vehicles from Outstate, he clarified that no significant increase had been imposed on small vehicles and that entry tax changes were part of rationalisation measures, with possible relief for certain heavy vehicle categories under consideration.
Responding to opposition allegations and demands for probes into land deals, Sukhu said he would comment only after reviewing the details.
He emphasised that the state must now move towards self-reliance and assert its rights over resources. "The people of Himachal Pradesh must prepare to stand on their own feet. We are confident of overcoming the current financial challenges and accelerating growth in the coming months," he added.
- ANI
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