Budget Session: Will Sukhu Government’s Third Budget Cross ₹58,000 Crore or Shrink Amidst Fund Crunch?
Shimla: As the Himachal Pradesh Budget Session kicks off on March 10, all eyes are on whether Chief Minister Sukhvinder Singh Sukhu’s government will manage to surpass its ₹58,000 crore mark from the last budget or if financial constraints will force a cut. The biggest hurdle?
The persistent fund crunch and the Centre’s refusal to release the Revenue Deficit Grant for the previous financial year.
On the other hand, the Sukhu government has been claiming a spike in revenue in excess of Rs 2200 Crore from its own resources.
With a shrinking fiscal space, can the government balance populist announcements with economic reality, or will this budget expose its vulnerabilities?
Centre’s Reluctance: A Pressure Point
The Sukhu government has been vocal about its financial woes, blaming the Centre for not releasing crucial grants.
The Revenue Deficit Grant, which is lifeline funding for the state, has not been released in full for the last year. So is the case with the Himachal's share in GST.
This raises a fundamental question: Will the upcoming budget acknowledge this shortfall, or will it resort to unrealistic projections?
If the budget ignores the unpaid grants, it risks appearing disconnected from ground realities.
If it acknowledges them but fails to outline a clear strategy for revenue generation, it exposes the state’s economic vulnerability.
Sukhu Must Own the Financial Mess Now
But here’s the real question—how long will the government keep blaming the Centre?
Sukhu has been in the driving seat for more than two years now, and financial management is his responsibility.
The state’s economic health depends as much on the Centre’s grants as on Sukhu’s mission management.
If Himachal’s finances are spiraling into crisis, then the government must answer:
What structural reforms have been introduced to reduce dependency on central funds?
What is the plan to increase the state’s own revenue sources?
Why is the debt burden rising instead of being managed?
A Budget With Limited Breathing Room
The debt burden is mounting, and the government has little room for lavish spending. Despite this, there are crucial sectors demanding attention:
Salaries and pensions – With old pension scheme (OPS) restoration, how will the government balance payments? The state still await Rs 9000 Crore on account of NPS pending with the centre.
Infrastructure and welfare schemes – With limited funds, will ongoing projects face slowdowns?
Health and education – Can these sectors see any meaningful expansion?
What to Expect?
1. Austerity Measures: Expect a tightened budget, with minimal new schemes and a focus on damage control rather than expansion.
2. More Reliance on Borrowing: With Centre’s reluctance, Sukhu government may increase state borrowings, but that only worsens long-term liabilities. The borrowing has crossed 90,000 Crore mark recently.
3. Political Blame Game: If the budget struggles to meet expectations, the government will likely pin the blame on Centre’s fund blockage rather than admit fiscal mismanagement.
As the shortened budget session unfolds, the opposition will seize the moment to corner the government on its financial handling.
The real test for Sukhu will be whether he can convince the state that the financial mess is not of his making—or if he will finally own up to the responsibility that comes with being in charge for more than three years.
