Himachal Pradesh Announces First-Ever Budget Cut of Rs 3,586 Crore, Total Outlay Now Rs 54,928 Crore
Synopsis
In a groundbreaking move, Himachal Pradesh has cut its budget by Rs 3,586 crore, bringing the total for 2026-27 to Rs 54,928 crore. Chief Minister Sukhu emphasizes the need for fiscal responsibility amidst financial challenges inherited from the previous government.
Key Takeaways
First-ever budget cut in Himachal Pradesh's history.
Budget reduced by Rs 3,586 crore to Rs 54,928 crore.
Focus on identifying and uplifting the poorest families.
Provision of 300 units of free power for eligible families.
Minimum support price for fish set at Rs 100 per kg .
Shimla, March 21 (NationPress) In a historic move, Himachal Pradesh has made a significant reduction in its budget by Rs 3,586 crore, bringing the total outlay down to Rs 54,928 crore for the fiscal year 2026-27, compared to the current budget of Rs 58,514 crore.
During his Budget address, Chief Minister Sukhvinder Singh Sukhu explained that the budget cut was essential to address the escalating debt crisis inherited from the previous BJP administration. He emphasized that the era for populist measures has ended, and there is a pressing need to minimize unproductive spending.
Sukhu remarked that the resilient residents of the hills are prepared to confront this financial challenge head-on.
This year marks the first occasion since 1952 that the Budget has been presented without the Centre's Revenue Deficit Grant (RDG).
The Chief Minister stated that efforts would be made to identify the most impoverished families for assistance, declaring, "The state's Below Poverty Line (BPL) list will specifically include the names of the poorest families. Currently, there are 2.65 lakh BPL families in Himachal, and we are now focusing on uplifting the most disadvantaged among them. The government aims to support one lakh of these families through the Mukhya Mantri Apna Sukhi Parivar scheme.
Under this initiative, qualifying families will receive 300 units of free electricity. Additionally, 27,000 families lacking permanent housing will receive aid to construct homes, and Rs 1,500 will be allocated to all women within these households as part of fulfilling the government's commitments.
The Assembly witnessed chaos as CM Sukhu attributed the state’s financial woes to the cessation of the Revenue Deficit Grant (RDG) and the ending of GST compensation.
He accused the BJP of placing Himachal in a debt crisis, claiming that this situation could have been averted had they resolved outstanding loans.
When Sukhu stated that those opposing support for the RDG had betrayed the interests of Himachal, BJP legislators, led by former Chief Minister Jai Ram Thakur, protested vocally in the Assembly.
Following a 20-minute uproar, Sukhu continued his address, asserting, "It is unjust and unfair to deprive the people of Himachal of the RDG grant." In the fisheries sector, he also announced a minimum support price (MSP) for fish procurement set at Rs 100 per kg under the Mukhya Mantri Machuara Sahayta scheme.
Point of View
The budget cut in Himachal Pradesh reflects a critical shift in fiscal policy aimed at addressing significant debt challenges. The CM's call for a more responsible approach to budgeting highlights the pressing need for sustainable financial management, particularly in light of the economic difficulties left by the previous administration.
NationPress
10 May 2026
Frequently Asked Questions
What is the total budget for Himachal Pradesh for 2026-27?
The total budget for Himachal Pradesh for the fiscal year 2026-27 is Rs 54,928 crore.
Why was the budget cut announced?
The budget cut was announced to address a mounting debt crisis left by the previous BJP government, as emphasized by Chief Minister Sukhu.
How many BPL families will receive assistance?
The government aims to assist one lakh of the poorest families under the Mukhya Mantri Apna Sukhi Parivar scheme.
What support will be provided to BPL families?
BPL families will receive 300 units of free electricity and financial assistance for housing construction.
What is the minimum support price for fish announced?
The minimum support price for fish procurement has been set at Rs 100 per kg under the Mukhya Mantri Machuara Sahayta scheme.
