RDG Phase-Out Was Known, Mismanagement Is the Real Crisis: Dhumal Blames Sukhu Govt for Himachal’s Fiscal Mess
Shimla:
Senior BJP leader and former Chief Minister Prof. Prem Kumar Dhumal on Sunday squarely blamed Chief Minister Sukhvinder Singh Sukhu for pushing Himachal Pradesh into a deep financial crisis, saying the problem is not just the phasing out of the Revenue Deficit Grant (RDG) but years of fiscal mismanagement and wasteful expenditure by the present government.
Prof. Dhumal said the withdrawal of RDG was neither sudden nor unexpected, as it was clearly spelt out in successive Finance Commission recommendations.
“It was known well in advance that RDG would end after March 31, 2026. Despite this, the state government failed to plan alternative revenue streams or enforce fiscal discipline. Now, projecting RDG phase-out as a shock is misleading the public,” he said.
Taking direct aim at CM Sukhu, the former CM said the present crisis is self-inflicted, driven by uncontrolled spending rather than structural constraints alone.
“The government keeps crying that the treasury is empty, yet it has created a large army of political recruits — advisors, chairpersons, AAGs, OSDs and other appointees — each adding to the burden on the exchequer through salaries, vehicles, staff and official perks,” Dhumal remarked.
He said financial crises cannot be resolved through speeches and blame games. “They require strict fiscal discipline, expenditure control and tough decisions.
"During my tenure, whenever the state faced financial stress, we cut discretionary spending, curtailed unnecessary travel, avoided official luxuries and ensured that even the highest offices led by example,” he said, adding that personal simplicity in governance was consciously maintained to avoid avoidable strain on public finances.
Dhumal rejected the attempt to shift responsibility to the Centre, pointing out that implementing Finance Commission recommendations is a constitutional obligation.
“Instead of creating confusion over RDG, the state government should explain why it failed to prepare despite having years to do so,” he said.
Highlighting reforms undertaken during his tenure, the former CM said the BJP government focused on strengthening agriculture and horticulture to boost revenues.
“Vegetable production and marketing were aggressively promoted, pushing annual turnover from about ₹250 crore to nearly ₹2,250 crore. When apple production dipped, diversification into alternative crops compensated for the loss and helped stabilise revenues,” he said.
In a sharp political dig, Dhumal said, “If the financial situation is genuinely grave, the first step should be to curb non-essential expenditure. Instead, we see expansion of political appointments and fresh spending on vehicles and facilities. This contradicts every principle of fiscal prudence.”
On Centre–State relations, he said the BJP-led Centre has consistently extended special support to Himachal Pradesh, including industrial packages and benefits linked to special category status.
“Facts must be placed honestly before the people. Political rhetoric will not pay salaries or pensions,” he said.
Prof. Dhumal cautioned that repeated public statements by the state leadership claiming the treasury is empty only erode public confidence.
“The crisis is not just about RDG. It is about mismanagement. What Himachal needs is decisive action — a hard review of spending, clear priorities and disciplined governance. Without that, no amount of blame-shifting will fix the economy,” he asserted.