Himachal Pradesh CM Seeks Special Central Assistance to Address Revenue Deficit

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman seeking a special central assistance package to cover the state's revenue deficit for 2026-27. He highlighted that the discontinuation of the Revenue Deficit Grant (RDG), which accounts for about 12.7% of Himachal's revenue, would adversely affect the state's finances. Sukhu urged the formation of a committee to assess hill states' economic challenges, citing Article 275(1) and concerns over uniform assessment criteria ignoring smaller states' needs. Despite fiscal discipline and revenue efforts, the state faces a widening deficit exacerbated by GST losses. Sitharaman reportedly assured sympathetic consideration of these concerns.