Shimla | February 9, 2026
Former Speaker of the Himachal Pradesh Vidhan Sabha and ex-Education Minister Dr. Radha Raman Shastri has expressed serious concern over the deteriorating financial condition of Himachal Pradesh, asserting that the fiscal stress faced by the state is not an isolated issue but a structural problem common to all Himalayan states with limited own resources.
In a statement issued here, Dr. Shastri said the details recently placed by the state government regarding Himachal’s economic condition are a matter of grave concern for the entire region. He pointed out that hill states, owing to their difficult terrain and fragile ecology, remain heavily dependent on central assistance to meet basic developmental and administrative expenditures.
Dr. Shastri strongly advocated the continuation of Revenue Deficit Grant (RDG) to Himachal Pradesh, arguing that the Centre must release grants in advance to offset the recurring revenue gap faced by the state every year. He warned that the decision of the Finance Commission to recommend discontinuation of RDG would severely destabilise the state’s finances.
“The financial position of Himachal Pradesh will become unsustainable if the Centre withdraws revenue deficit support. Managing the state solely on the basis of its own limited resources is practically impossible,” he cautioned.
The former Speaker emphasised that not only Himachal Pradesh but all Himalayan states deserve special consideration, given their geographical constraints and higher cost of governance. He urged the Central government to revisit its approach towards financial assistance to hill states and take a just, sensitive and pragmatic decision.
Dr. Shastri said people across Himachal Pradesh are hopeful that the Centre will find a permanent and policy-backed solution to the problem, ensuring a stable fiscal framework under which central grants to compensate revenue deficits are provided every year.
Terming Himachal Pradesh a peaceful state, he said the emergence of economic distress is a matter of deep concern for its residents.
He expressed hope that the Union government would bring economically stressed states under a special and sustainable financial arrangement to ensure uninterrupted governance and development.
