Shimla: High drama unfolded in the Himachal Pradesh Vidhan Sabha on Saturday as Chief Minister Sukhvinder Singh Sukhu rose to present the Budget, triggering a sharp exchange and brief adjournment of proceedings.
The ruckus began when the Chief Minister remarked that the Budget was prepared under his leadership and not by “carriers or officers,” though he added that officials had contributed. The use of the word drew strong objections from Leader of Opposition Jai Ram Thakur and BJP MLAs, who accused the CM of disrespecting the bureaucracy.
BJP members stormed the Well of the House, raised slogans, and protested loudly, forcing the Speaker to halt proceedings for some time. The Budget speech was briefly disrupted amid the chaos before normalcy was restored.
CM flags financial stress, seeks ‘green bonus’
Resuming his address, CM Sukhu struck a combative tone, highlighting the state’s fragile financial position and structural disadvantages. He said Himachal’s resources are limited to forests and flowing water, and stressed that the state pays a “heavy price” for preserving ecology.
Citing a study by the Indian Institute of Forest Management, he claimed Himachal contributes ecological services worth nearly ₹90,000 crore annually to the nation. “We act as the lungs and water source of the country, yet instead of a green bonus, our revenue deficit grant has been curtailed,” he said.
Power, water and dues: ‘Himachal being short-changed’
The Chief Minister alleged that the state is not getting its rightful share from hydropower, despite generating around 13,000 MW of electricity. He said even the mandated 12% royalty power is not being fully realised, and projects due for transfer after 40 years are not being handed back.
He further claimed that nearly ₹5,000 crore dues related to the Bhakra Beas Management Board (BBMB) have been pending for 14 years, and flagged delays in disaster relief funds despite the Centre acknowledging losses.
GST, loans push state into ‘debt trap’
Sukhu said Himachal has suffered an estimated ₹25,000 crore loss due to GST since its rollout, as it is a consumption-based tax regime that benefits larger states. He also pointed out that GST compensation ended in 2020, worsening the fiscal strain.
Drawing comparisons with the previous government, he said that while earlier regimes received substantial revenue deficit grants and GST compensation, the debt burden has now escalated to a point where annual loan repayments and interest outgo exceed fresh borrowings.
Call for fiscal discipline, tough decisions
The Chief Minister stressed that the time for populism is over, calling for prudent financial management, closure of non-performing institutions, and reduction in unproductive expenditure.
“Resources must be used wisely. We need to increase repayment capacity and take tough decisions,” he said, adding that central assistance often comes as loans, not grants, further adding to the state’s liabilities.
Raising concerns over fiscal priorities, Chief Minister Sukhu indicated that the grant allocation, when viewed through the principle of the time value of money, should have been enhanced to at least Rs 10,000 crore in the coming year. However, he noted that the allocation has instead been curtailed, forcing the government to compress the overall budget size.
He stated that the state’s budget, which stood at around Rs 1.50 lakh crore earlier, is now projected at approximately Rs 54,928 crore for the upcoming financial year, reflecting financial constraints.
Emphasising the government’s priorities, the Chief Minister said the rural economy remains the backbone of Himachal Pradesh. “All our policies are centered on improving the lives of hardworking people living in rural areas,” he said.
Highlighting key initiatives, Sukhu noted that over the past three budgets, the government has pushed to position Himachal as a green state, tourism hub, energy state, and a model in education and healthcare security, with encouraging results now visible.
Reiterating commitment to promises made to the जनता, he said the government began delivering immediately after assuming office. “The restoration of the Old Pension Scheme was not a political move but a sensitive, employee-friendly decision,” he added.
To strengthen the rural economy, the government has taken several steps, including:
-
Increasing milk procurement prices to among the highest in the country
-
Providing incentives for cow dung-based organic manure
-
Extending support to crops like turmeric and maize, with Himachal emerging among the first states to do so
Additionally, Rs 500 crore has been allocated for half-completed projects, aiming to fast-track development works and ensure better resource utilization.
The Chief Minister asserted that these measures are part of a broader strategy to stabilise finances while continuing welfare-driven growth in the state.
‘Vyavastha Parivartan’ roadmap
Ending his speech, Sukhu reiterated his government’s commitment to “vyavastha parivartan” (systemic change), asserting that despite financial constraints, the state will push ahead with its development vision.
“This Budget reflects our resolve to take bold decisions in difficult times. We will face every challenge with courage and with the support of the people,” he said.
(More)
#HimachalBudget #VidhanSabha #SukhuGovt #BreakingNews
