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Himachal Budget Session Begins Amid Tension Over Revenue Deficit Grant

The Himachal Pradesh Vidhan Sabha’s Budget session opened on a dramatic note when Governor Shiv Pratap Shukla wrapped up his 50-page address in under three minutes, skipping key sections related to the Revenue Deficit Grant (RDG). His decision immediately set the tone for heated debates inside the House.

The omitted paragraphs dealt with the 16th Finance Commission’s recommendation to discontinue RDG support to Himachal — a move that has become the center of political confrontation. For decades, the state has relied on this grant to bridge its fragile finances, and its withdrawal has sparked sharp exchanges between the ruling party and the opposition.

Leader of Opposition Jai Ram Thakur accused the government of deflecting responsibility and indulging in “political gimmickry,” while tracing the state’s rising debt burden over the years. He argued that fiscal mismanagement and extravagant spending had worsened the crisis. On the other hand, ruling members like Theog MLA Kuldeep Rathore urged a non-political approach, stressing that Himachal’s unique financial challenges — including disaster recovery costs — make external support essential.

Speaker Kuldeep Pathania allowed immediate discussion on the RDG issue, overruling objections from the BJP. Parliamentary Affairs Minister Harshwardhan Chauhan defended the urgency, noting that even Parliament conducts its Budget session in phases.

With the RDG discontinued, the session is expected to revolve around two competing narratives: one blaming external policy decisions, the other pointing to internal fiscal mismanagement. As the debates unfold, the state’s financial future hangs in the balance.

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