CM Sukhwinder Singh Sukhu Meets Union Finance Minister Nirmala Sitharaman, Seeks RDG Support
Sukhvinder Singh Sukhu met Nirmala Sitharaman in New Delhi on Monday and sought a special financial package to cover the revenue deficit for the financial year 2026-27.
The Chief Minister stated that discontinuation of the Revenue Deficit Grant (RDG) would severely impact the state’s financial health. He emphasized that Himachal Pradesh cannot be compared with larger states whose RDG has been discontinued. The RDG contribution for the state was around 12.7 percent, the second highest after Nagaland.
Sukhu said that while bigger states may withstand such a decision, a small hill state like Himachal Pradesh would struggle. He termed a uniform assessment of all states as neither healthy nor transparent and said that stopping RDG weakens the spirit of cooperative federalism.
Referring to Article 275(1) of the Constitution of India, he said grants are meant to bridge the gap between revenue receipts and expenditure of states. He expressed concern that, for the first time, the Finance Commission has overlooked the developmental needs of small hill states.
The Chief Minister highlighted that the state government has taken several austerity measures in recent years, avoided off-budget borrowings, and mobilized nearly ₹600 crore annually through various cesses. Despite rationalizing subsidies and revising tax rates where possible, the revenue gap could not be bridged, especially after GST-related losses.
He requested the Union Finance Minister to constitute a committee to properly assess the economic challenges of hill states and recommend corrective measures.
Union Finance Minister Nirmala Sitharaman assured that the state’s demands would be considered sympathetically. Senior officials accompanying the Chief Minister were also present during the meeting.
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