Why Did Himachal Governor Skip Addressing the Assembly Over the 16th Finance Commission?
Synopsis
Key Takeaways
Shimla, Feb 16 (NationPress) The Governor of Himachal Pradesh, Shiv Pratap Shukla, astonished lawmakers on the inaugural day of the Budget Session by wrapping up his customary 50-page address in mere minutes, deliberately omitting sections related to the 16th Finance Commission.
Political analysts noted that the Governor avoided a contentious matter regarding the termination of the Revenue Deficit Grant (RDG) by the 16th Finance Commission, a significant topic for small and mountainous states.
Observers believe that the Governor has established a confrontational stance towards the principal Opposition party, the BJP, which has been accusing the Congress-led government of fiscal mismanagement and obstructing Central-funded large-scale projects, including a medical device park crucial for boosting the state’s economy, citing issues of stubbornness, corruption, and severe mismanagement.
During his address, the Governor only recited the introductory lines concerning the passage of supplementary demands for 2025–26, the Budget for 2026–27, and other legislative matters.
Typically, the Budget Session commences with the Governor’s remarks, which usually last over an hour and highlight the government’s accomplishments.
In 2015, the then-Governor Kalyan Singh similarly concluded his 39-page address in a matter of minutes.
At that time, the Congress party also governed the state.
“As paragraphs three to sixteen of my speech relate to a constitutional entity, I prefer not to elaborate,” stated Shukla.
He concluded his 50-page address in under three minutes, focusing solely on the first two paragraphs that outlined the agenda for the session – passing supplementary demands for 2025–26, the Budget for 2026–27, and additional legislative business.
The address indicated that Article 275(1) of the Constitution grants funds to states unable to reconcile revenue and expenditure.
Historically, from the inception of the Finance Commission in 1952 through the 15th Finance Commission (2020–25), Himachal Pradesh has consistently benefited from RDG.
Paragraphs 15 and 16, which the Governor overlooked, highlighted that the 16th Finance Commission’s ruling to abolish RDG would critically impact small and mountainous states, especially Special Category States like Himachal Pradesh.
The speech underscored that for hilly and border states, where revenue generation is constrained by geography and natural resources, RDG is essential for financing development initiatives, social welfare programs, and disaster management efforts.
In response to the Governor's choice to skip significant portions of the customary address, Chief Minister Sukhvinder Singh Sukhu downplayed the action, implying it was “not unprecedented” as governors have omitted parts of addresses in the past.
Regarding the state's financial situation, he remarked: “This is not merely about the government; RDG is our entitlement. Do not infringe upon the rights of the state.”