Himachal CM Sukhu terms Union Budget ‘inequitable’, raises concerns over Finance Commission report

Himachal CM Sukhu criticises the Union Budget for being inequitable and neglecting crucial State priorities and financial support.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Sunday (February 1, 2026) termed the Union Budget 2026-27 “inequitable,” as it was ‘anti-poor and anti-farmer’ that ignores the interests of key sections of the society.

The Chief Minister said the Budget overlooked the concerns and priorities of Himachal Pradesh, even as he raised serious concerns regarding the recently tabled 16th Finance Commission (FC-XVI) Report for the period 2026-31.

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He expressed disappointment over the Commission’s failure to provide meaningful Revenue Deficit Grants (RDGs) for the State. The Finance Commission has not recommended RDGs for small States, including Himachal Pradesh, which he termed a deeply disappointing decision and termed it as an injustice, hurting the sentiments of the people.

“Article 275(1) of the Constitution provides for State-specific grants from the Union government, also known as RDG. From 1952 up to the Fifteenth Finance Commission, these grants were regularly provided by the Centre to the States. However, for the first time, the Sixteenth Finance Commission has discontinued this grant. It is sad that this omission overlooks structural fiscal handicaps, including high forest and ecological cover of about 67%, higher per-capita cost of service delivery in mountainous terrain and repeated natural disasters causing losses exceeding ₹15,000 crore in recent years,” he said addressing a press conference in Shimla.

Mr. Sukhu said the absence of adequate RDGs will constrain Himachal Pradesh’s ability to deliver essential public services, maintain fiscal sustainability and invest in future growth, potentially forcing difficult choices between service delivery and increased indebtedness.