Shimla, February 7:
After initial disagreement, Himachal Pradesh Governor Shiv Pratap Shukla has convened a special session of the 14th Vidhan Sabha from February 16, 2026, paving the way for an intense debate on the state’s worsening financial situation just ahead of the Budget Session.
As per the notification issued on Friday, the 11th session of the 14th Vidhan Sabha will begin at 2 pm on February 16 at the Vidhan Sabha in Shimla, under the powers conferred by Article 174(1) of the Constitution of India.
Confirming the development, Vidhan Sabha Speaker Kuldeep Singh Pathania said the notification was issued by the Vidhan Sabha Secretariat after receiving the recommendation of the Governor.
He said the session would open with the Governor’s address, followed by obituary references and legislative business.
RDG Withdrawal Triggers Special Session
The special session was sought by the Sukhvinder Singh Sukhu-led Congress government in the wake of the Centre’s decision to discontinue Revenue Deficit Grant (RDG) to Himachal Pradesh, a move that is expected to deprive the hill state of nearly ₹50,000 crore over the next five years.
The Union government has justified the withdrawal by citing failure to maintain fiscal discipline.
The state government has argued that the RDG cut has pushed Himachal into an unprecedented financial crisis, severely affecting governance and development activities.
Chief Minister Sukhvinder Singh Sukhu said that despite the prevailing financial stress, the state government has made sustained efforts to strengthen its own revenue base.
Addressing MLAs from Kullu, Mandi and Shimla districts during the MLA Priority Meetings for 2026-27 here today, Sukhu said the state generated ₹26,683 crore from its own resources over the last three years.
He said Himachal earned net financial benefit of about ₹401 crore after acquiring ownership of the Wildflower Hall Hotel, and is expected to earn around ₹20 crore annually from the property.
The Chief Minister further said that the state’s royalty share in the Karcham-Wangtoo Hydropower Project was increased from 12 per cent to 18 per cent, which would fetch nearly ₹150 crore additional revenue every year.
Detailing central assistance, Sukhu said that under the 15th Finance Commission, Himachal Pradesh received a total Revenue Deficit Grant (RDG) of ₹37,199 crore, released in a tapering manner — ₹10,249 crore in 2021-22, ₹9,377 crore in 2022-23, ₹8,057 crore in 2023-24, ₹6,249 crore in 2024-25 and ₹3,257 crore in 2025-26.
He said the 16th Finance Commission’s decision to discontinue RDG would deprive Himachal of nearly ₹50,000 crore over the next five years, calling the move unjust for a hill state with difficult geographical conditions.
Sukhu warned that the decision would severely impact development works, welfare schemes, and the payment of salaries and pensions, and urged the Centre to restore RDG and extend special financial assistance to the state.
The Chief Minister also flagged regional imbalances in central policies, pointing out that while the Union Budget 2026-27 announced a “Buddhist Circuit” for the North-Eastern states, Himachal Pradesh — a major centre of Buddhist culture — was excluded, terming it discriminatory.
Treasury Paralysed, MLAs Cry Foul
The financial strain has virtually paralysed the state treasury, with even sanctioned funds and cleared bills not being released, insiders said.
After attending the MLAs Priority Meeting here today BJP MLAs led by Vipin Parmar, former Speaker said the party MLAs have publicly complained that MLA Nidhi funds are not being disbursed, while departments have flagged that no fresh Detailed Project Reports (DPRs) are being prepared or submitted, bringing new development works to a standstill.
The Sukhu government is just doing formality, he claimed while talking to the media after the meeting.
Debt Crosses ₹1 Lakh Crore, Borrowing Curbed
Himachal’s debt burden has crossed ₹1 lakh crore, with the state having borrowed over ₹28,000 crore in the last three years alone.
With the fiscal deficit exceeding 5 per cent of the Gross State Domestic Product (GSDP), the Centre has imposed a ceiling on further borrowings, tightening the fiscal squeeze.
While the opposition BJP has blamed the Congress government for “reckless financial management,” the Sukhu government maintains that the RDG withdrawal among other things, has compounded long-standing structural challenges faced by hill states.
CM to Review Finances, Public Presentation Planned
Ahead of the special session, Chief Minister Sukhvinder Singh Sukhu has convened a high-level meeting on the state’s financial status on Sunday.
The government has also decided to make a detailed presentation on Himachal Pradesh’s financial health before the media, MLAs and civil society, in an effort to place the fiscal situation in the public domain.
With the Budget Session looming, the February 16 special sitting is expected to set the tone for a high-voltage political and fiscal showdown, as Himachal grapples with shrinking central support, mounting debt and tight borrowing limits.
Meanwhile, Union Civil Aviation Minister Shekhavat is briefing media on the union Budget and other issues concerning Himachal tomorrow.
It is high pitch drama folding ahead in the coming week in Himachal.
