Himachal CM calls on FM Sitharaman, seeks package to cover revenue deficit

NEW DELHI: Himachal Pradesh Chief Minister Sukhvinder Sukhu on Monday called on Union Finance Minister Nirmala Sitharaman here and sought a financial package under special central assistance to cover the revenue deficit for 2026-27.

The Chief Minister apprised the Union Finance Minister that discontinuation of Revenue Deficit Grant (RDG) will have a far-reaching adverse impact on the financial health of the state, adding that Himachal Pradesh cannot be compared to other states whose RDG has been discontinued.

He said the RDG contribution for the state was about 12.7 per cent, which was the second-highest after Nagaland. Big states can withstand the discontinuation, but the economy of Himachal Pradesh cannot, he said.

Stressing that assessing all states on a single yardstick was neither healthy nor transparent, Sukhu termed the discontinuation as "undermining the spirit of cooperative federalism".