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Himachal Budget Session 2026 Revenue Deficit Grant in focus as Sukhu prepares Fourth Budget
Shimla, March 3,
The resumption of the Himachal Pradesh Legislative Assembly’s Budget Session likely on March 18 carries significant implications for the state’s fiscal direction, particularly as uncertainties loom over the continuation of the Revenue Deficit Grant—a lifeline that supports nearly 15 per cent of the state’s finances.
Chief Minister Sukhvinder Singh Sukhu is scheduled to present the Budget for the financial year 2026–27 on March 20, marking his fourth budget since taking office. The two days leading up to the budget presentation are expected to be politically and financially crucial, with discussions lined up on the Motion of Thanks to the Governor’s Address, supplementary demands for grants, the Appropriation Bill, and the presentation of the Economic Survey.
Parliamentary Affairs Minister Harshwardhan Chauhan, addressing mediapersons in Shimla, confirmed that preparations for the second phase of the session have been completed. He also revealed that a meeting of the Congress Legislature Party (CLP) has been convened on March 5 at the Vidhan Sabha complex.
The CLP meeting gains added significance in the backdrop of the upcoming Rajya Sabha election scheduled for March 16. The ruling party is expected to finalise and announce its candidate imminently, a move that could influence the political temperature inside the Assembly ahead of the budget.
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Himachal Budget Session 2026 Revenue Deficit Grant
At the core of the financial debate is the discontinuation of the Revenue Deficit Grant following the recommendations of the 16th Finance Commission. The Chief Minister recently raised the issue with Union Finance Minister Nirmala Sitharaman, urging the Centre to continue the grant, citing its critical role in maintaining fiscal stability in a hill state like Himachal Pradesh.
Adding another layer to the evolving political and fiscal scenario, the state Cabinet is also scheduled to meet Prime Minister Narendra Modi, indicating possible high-level engagements on financial assistance and policy support.
Notably, during the earlier phase of the session, the Assembly witnessed intense debate over the Revenue Deficit Grant issue, culminating in a resolution passed by the ruling Congress Legislature Party amid strong protests from the Opposition.
With fiscal pressures mounting and key political developments unfolding, the upcoming phase of the Budget Session is expected to shape both the economic roadmap and political narrative in Himachal Pradesh.
Himachal Budget Session 2026 Revenue Deficit Grant
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
