Shimla, Feb 16,
The Himachal Pradesh assembly will convene its Budget Session on Monday afternoon amid mounting fiscal stress following the discontinuation of the Revenue Deficit Grant (RDG) by the 16th Finance Commission. The opening day is expected to largely centre on strategic measures to mitigate the ongoing financial crisis affecting the state.
The budget session 2026 will see Chief Minister Sukhvinder Singh Sukhu addressing the pressing issues stemming from the RDG withdrawal in Himachal. As the assembly gathers on Day 1, lawmakers are expected to deliberate on potential solutions to alleviate the fiscal stress, ensuring that the interests of the constituents are prioritized during this critical period. The session’s proceedings will lay the groundwork for addressing the broader implications of the RDG cessation on Himachal’s economy.
According to the listed business for Day 1, proceedings will begin with the Governor’s Address and obituary references. Thereafter, the government has scheduled a substantive discussion under Rule 102 to deliberate upon the financial situation arising out of the Centre’s decision to discontinue RDG support.
Chief Minister Sukhvinder Singh Sukhu is slated to move the motion in the House. The discussion will commence with remarks from the Leader of Opposition, followed by participation from members across the treasury benches and the Opposition.
Also read: Rs 58,514 Cr Himachal Pradesh budget 2025-26: Revenue figures and How 100 Rs is spent
RDG withdrawal at the core
The State Government has multiple times stated that the abrupt discontinuation of RDG has widened the gap between revenue receipts and committed expenditure. Routine obligations such as salaries, pensions and ongoing developmental works have reportedly come under pressure, intensifying concerns over fiscal sustainability.
The Revenue Deficit Grant had been a crucial support mechanism for hill states like Himachal Pradesh, compensating for structural revenue constraints arising from limited industrial base, difficult terrain and higher infrastructure costs. With the grant no longer continuing in its earlier form, the government has signalled the need for collective political consensus to press for reconsideration.
Sources indicate that a formal resolution urging restoration of RDG support may be taken up for adoption later in the session, likely by February 18.
Session duration hinges on Government business
Speaker Kuldeep Singh Pathania stated that the three-day session could be extended depending upon the volume of government business. He indicated that unlike longer sittings, the present session’s duration would largely depend on the agenda submitted by the State Government.
“If additional government business is brought before the House, the session may continue beyond February 18. Otherwise, it may be adjourned as per schedule,” he said while interacting with mediapersons.
Vidhan Sabha Secretary Yashpal Sharma noted that the Assembly may attempt to rationalise certain expenditures during the session. With daily proceedings estimated to cost around Rs 73 lakh, measures such as limited ministerial staff deployment and a relatively low-profile sitting could marginally reduce expenses by a few lakh rupees per day.
A Sombre opening expected
Given the gravity of the financial concerns confronting the hill state, Day 1 of the Budget Session is expected to remain serious and restrained in tone. The RDG debate is likely to set the broader political and fiscal direction of the session, with the sustainability of the State’s finances taking centre stage in the days ahead.
The coming discussions will indicate whether a unified political stance emerges to seek enhanced central assistance or whether the issue triggers sharper confrontation between the treasury and Opposition benches.
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.
