Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a Rs 54,928-crore budget for the 2026-27 financial year in the Assembly, marking a significant reduction of Rs 3586 crore in the budget compared to previous years due to stopping of Revenue Deficit Grant (RDG) by the Central government .
Amid dire financial situation prevailing in the state, the CM announced a reduction of his salary and that of ministers and legislators, ranging from 20 percent to 50 percent for the next six months.
The CM largely blamed the discontinuation of the Revenue Deficit Grant (RDG) by the Centre, resulting in a loss of over Rs 8000 crore annually, for the financial crunch in the state.
Opposition BJP members disrupted the session, accusing the government of its failure in financial management and protested against the salary cuts.
The major announcements made in the budget are the increase in procurement price of cow milk by Rs 10 from Rs 51 to Rs 61 per liter, and plans to set up three new Aero Cities near Kangra Airport, Him Chandigarh and Him Panchkula.
The CM announced the launch of the Khelo Himachal, Chitta Mukt campaign, aiming to engage 50,000 youth in sports.
He also announced minimum Support Price (MSP) for ginger fixed at Rs 30 per kg and announced increase in pension with hundred percent disabilities from Rs 1700 to Rs 3,000 and increased remuneration of Anganwadi workers.
The Chief Minister said despite the financial challenges, the budget focused on rural economic strengthening and self-reliance and the e per capita income (PCI) had increased to Rs 2,83,626.
CM Sukhu says the MGNREGA will continue in Himachal and four lakh ‘man-days’ will be generated for which the state will provide money from its own kitty. This could put an additional burden of Rs 300 to 600 crore on the state government.
The CM announced identification of the poorest of the poor families from the BPL list and one lakh of them will be helped under Mukhya Mantri Apna Sukhi Parivar scheme.
He also announced a few other schemes in the budget.
