Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a Rs 54,928 crore budget for 2026-27 on Saturday, down Rs 3,586 crore from Rs 58,514 crore last year. He blamed the Centre's discontinuation of the revenue deficit grant, causing an average annual loss of Rs 8,105 crore. Salary deferrals for six months were announced for ministers, MLAs and senior officials to address financial strain.
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented his fourth budget for 2026-27 on March 21, 2026, during the ongoing assembly session in Shimla. The outlay stands at Rs 54,928 crore, a Rs 3,586 crore reduction from Rs 58,514 crore in 2025-26—the first time the budget size has shrunk. Sukhu attributed this to the Centre's discontinuation of the revenue deficit grant (RDG) following the 16th Finance Commission's recommendations, resulting in an average annual loss of Rs 8,105 crore. The state received Rs 48,630 crore in RDG from 2020-21 to 2025-26, which he said should have risen to at least Rs 10,000 crore yearly adjusted for inflation and time value of money. Budget estimates project revenue receipts of Rs 40,361 crore against expenditure of Rs 46,938 crore, yielding a revenue deficit of Rs 6,577 crore. Revised estimates for 2025-26 show revenue at Rs 44,537 crore and expenditure at Rs 54,349 crore, with a deficit of Rs 9,812 crore. The state anticipates 8.3 per cent growth this fiscal, with per capita income at Rs 2,83,626. To tackle the crisis—blamed partly on prior government's mismanagement—Sukhu announced six-month salary deferrals: 50 per cent for the CM, 30 per cent for Dy CM and ministers, 20 per cent for MLAs and advisors, 30 per cent for Chief Secretary and Principal Secretaries, and 20 per cent for Secretaries and Heads of Departments. He criticised the opposition BJP for not raising the RDG issue with the Centre, stating, “History will never forget them.”