In a first, Himachal’s budget slashed by Rs 3,586 crore; total outlay Rs 54,928 crore

SHIMLA: In a first in the state’s history, Himachal Pradesh has slashed its budget size by Rs 3,586 crore with the outlay down to Rs 54,928 crore for 2026-27 from the current fiscal of Rs 58,514 crore.

Justifying the decision, Chief Minister Sukhvinder Singh Sukhu, in his Budget speech, informed the Assembly that the decision to cut the outlay was to tackle a mounting debt trap left by the previous BJP regime. He said the time to take populist measures was over, as there was a need to cut down on unproductive expenditure.

He said people of the hills were tough and resilient and would face a financial crisis bravely.

Sukhu, who holds the Finance portfolio, said this was the first time since 1952 that the Budget was being presented in the absence of the Revenue Deficit Grant (RDG) by the Centre.

Saying the poorest of the poor would be identified for their upliftment, the Chief Minister said, “The state's BPL list will especially include names of the poorest of poor families. Presently, there are 2.65 lakh BPL families in the state, and now, the government is identifying the poorest of the poor to uplift them. One lakh deprived poorest of poor families to be helped under Mukhya Mantri Apna Sukhi Parivar scheme.