Closure of RDG is not new, it was decided years ago – why didn’t the govt plan in time : Dhumal
Senior BJP leader and former Chief Minister Prof. Prem Kumar Dhumal expressed serious concern over the prevailing financial situation in Himachal Pradesh, stating that the current fiscal stress is not a sudden development but the result of long-foreseen challenges that the government failed to address in time.
Prof. Dhumal said that the phased withdrawal of the Revenue Deficit Grant (RDG) was known well in advance and had been clearly mentioned in the Finance Commission’s recommendations. He pointed out that it was already clarified that RDG would come to an end after 31 March 2026, and therefore, portraying it as a new or unexpected development is misleading. He questioned why the state government did not formulate alternative revenue-generation strategies and a robust financial management plan despite having ample time to prepare.
He emphasized that implementing the Finance Commission’s recommendations is a constitutional responsibility of the Central Government, and instead of creating confusion or indulging in political blame games, the state government should introspect and explain its own lack of preparedness.
Drawing from his experience as Chief Minister, Prof. Dhumal said that economic challenges are not uncommon for resource-constrained states, but responsible governance lies in taking timely and tough decisions. During difficult financial phases, his government adopted strict fiscal discipline, controlled discretionary expenditure, curtailed unnecessary travel and official luxuries, and ensured that even the highest offices led by personal example. He added that he himself ensured simplicity in official conduct and avoided placing avoidable financial burdens on the state exchequer.
Highlighting structural reforms undertaken during his tenure, Prof. Dhumal said that the government focused on strengthening agriculture and horticulture to enhance state revenues. By promoting vegetable production and marketing, annual turnover increased from around ₹250 crore to nearly ₹2,250 crore. He further stated that the decline in apple production was compensated through diversification into alternative crops, which significantly improved revenue generation and contributed to better budgetary balance.
Taking an indirect dig at the present government, he remarked that while the government speaks of financial distress, it is simultaneously appointing a large number of chairpersons, advisors, and office-bearers, leading to substantial additional expenditure. Spending on new vehicles, extra staff, and official facilities contradicts the principles of financial discipline. If the situation is genuinely grave, the first step should be a strict curb on non-essential expenditure, he asserted.
On Centre–State relations, Prof. Dhumal said facts must be placed honestly before the public. He noted that whenever the BJP has been in power at the Centre, Himachal Pradesh has received special support — be it industrial packages or benefits associated with special category status. Mere political rhetoric, he said, cannot resolve economic challenges; only sound policy decisions, resource mobilisation, and expenditure control can do so.
Concluding his statement, Prof. Dhumal cautioned that repeated public assertions by the state leadership that the treasury is empty weaken public confidence. What is required, he said, is decisive action — a comprehensive review of expenditure, clear prioritisation, and strengthened financial management. Economic challenges, he stressed, can only be addressed through responsible decision-making and disciplined governance.
