Himachal’s Tightrope Budget: Balancing Cuts with Care
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a ₹54,928-crore budget for 2026–27, a leaner plan shaped by the withdrawal of the Revenue Deficit Grant (RDG) from the Centre. The loss of over ₹8,000 crore annually has left the state grappling with financial strain, prompting Sukhu to announce a symbolic cut in salaries of ministers, legislators, and even himself—ranging from 20% to 50% for six months.
The Assembly session saw heated protests from the Opposition BJP, who accused the government of mismanaging finances and criticized the salary reductions. Yet, Sukhu emphasized that the budget was designed to strengthen rural livelihoods and promote self-reliance, even in tough times.
Key highlights included:
- Support for farmers and workers: MSP for ginger fixed at ₹30/kg, cow milk procurement price raised to ₹61/liter, and Anganwadi workers’ pay increased.
- Social welfare: Pension for those with 100% disabilities doubled to ₹3,000.
- Youth engagement: Launch of Khelo Himachal, Chitta Mukt campaign to involve 50,000 young people in sports.
- Infrastructure push: Plans for three new Aero Cities near Kangra Airport, Him Chandigarh, and Him Panchkula.
- Employment generation: MGNREGA to continue with four lakh man-days funded by the state, despite the added burden of ₹300–600 crore.
- Targeted support: Identification of the poorest families from the BPL list, with one lakh households to benefit under the Mukhya Mantri Apna Sukhi Parivar scheme.
Despite the fiscal squeeze, Sukhu highlighted that Himachal’s per capita income has risen to ₹2,83,626, signaling resilience amid adversity. His message was clear: while the state must tighten its belt, it will not compromise on care for its people.
