Mandi (Himachal Pradesh), March 16: Chief Minister Sukhvinder Singh Sukhu on Sunday used the platform of a foundation-stone ceremony in Mandi — attended by Chief Justice of India Surya Kant — to sharply criticise the Centre’s decision to discontinue the Revenue Deficit Grant (RDG), saying the move threatens the state’s finances and development plans.
Speaking from the stage at the new judicial court complex event, Sukhu said the RDG had been a vital constitutional assistance under Article 275(1) and its discontinuation by the 16th Finance Commission places “undue pressure” on hill states like Himachal Pradesh, which face higher costs of service delivery and limited revenue streams. He appealed for reconsideration and special assistance for mountain states.
Government sources and media reports say Himachal had received sizable RDG allocations under the previous Finance Commission cycle and the state had been expecting similar support for 2026–31. Sukhu and state officials warned the cut could translate into a multi-thousand-crore shortfall, with some estimates pointing to potential revenue losses running into tens of thousands of crores over the commission period.
Officials present at the Mandi ceremony also noted that the Chief Minister raised broader concerns about the Union Budget’s treatment of hill states and urged the Centre to take prompt remedial steps. Sukhu has said the state may pursue political and legal remedies, including taking the matter up with the Prime Minister and exploring judicial options if necessary.
The foundation-stone event in Mandi drew senior judicial and state officials, with the Chief Justice stressing the need for accessible judicial infrastructure. Sukhu used the occasion both to highlight the new court complex and to press his appeal for financial justice for Himachal’s residents, saying the move affects public services, infrastructure projects and farmer welfare programmes.
State budgets already carry significant committed liabilities such as salaries and pensions; leaders fear that cuts to constitutional grants will increase fiscal stress and crowd out development spending unless alternate transfers or compensatory measures are provided by the Centre. The state government says it will keep pressing the issue through official channels.
