Shimla: Chief Minister Sukhvinder Singh Sukhu is burning the midnight oil, giving final touches to Himachal Pradesh’s Budget for the financial year 2026–27—his fourth budget—set to be tabled in the Vidhan Sabha on Saturday.
This comes a day after the government pushed through a hefty supplementary budget of ₹40,461 crore in the House on March 19, underlining the tightrope walk the state finds itself on financially.
Sukhvinder Singh Sukhu to bring a hefty supplementary budget has been seen by some as a fiscal manoeuvre to manage immediate liabilities, but economists argue it also reflects gaps in initial budgeting and poor financial planning, as frequent mid-year revisions point to underestimation of expenditure and revenue pressures.
And make no mistake—this is no ordinary budget. It’s shaping up to be a high-stakes political and economic balancing act ahead of next year’s elections.
Tight Finances, Big Promises
The Sukhu government is staring at a grim fiscal scenario. The Centre’s decision to halt Revenue Deficit Grants (RDG) for the next five years could punch a massive ₹48,000 crore hole in the state’s finances. Add to that negligible GST compensation and the Centre increasingly tying schemes like MNREGA to matching state contributions—the squeeze is real.
Compounding the crisis is a burgeoning debt trap, with Himachal’s debt crossing the ₹1 lakh crore mark.
The Centre has also tightened the screws on borrowing limits, especially after the state reportedly exceeded borrowings of over ₹28,000 crore in the past three years—further shrinking the government’s fiscal maneuverability.
Yet, expectations are sky-high.
From the promised ₹1,500 monthly assistance to women, to creating five lakh jobs in five years, and the ambitious goal of making Himachal self-reliant by 2028—the government has a long list of commitments waiting for financial backing.
Arrears, OPS, Pay Scales—Pressure Mounts
The burden doesn’t end there. Huge pending arrears, the rollout of the Old Pension Scheme (OPS), and demands for revised pay scales are adding to the financial stress.
With limited fiscal space and rising liabilities, the government is expected to walk a fine line between welfare commitments and fiscal prudence.
A Himalayan Task Ahead
Political observers say this budget could well define the Sukhu government’s legacy as it heads into elections next year. Delivering on promises without derailing the state’s fragile economy is nothing short of a Himalayan challenge.
Focus on Welfare and Growth
Despite the odds, the Chief Minister has indicated that the budget will aim to bring “समृद्धि” (prosperity)—placing “जन-जन की खुशहाली, सम्मान और समृद्धि” at its core.
The government claims the budget will not only strengthen the state’s economy but also open new avenues for employment and development, paving the way for a self-reliant and prosperous Himachal.
All eyes are now on Saturday, as the Chief Minister rises in the Assembly to present what could be one of the most crucial budgets in the state’s recent history.
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