March 3, 2026

Himachal’s 15% Fiscal Gap Demands Collective Action

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Principal Media Advisor to the Chief Minister, Naresh Chauhan, on Tuesday said that Himachal Pradesh is facing a fiscal gap of nearly 15 percent following the withdrawal of the Revenue Deficit Grant (RDG), a move that significantly impacts the state’s 7.5 million population.

He stated that for a small and predominantly hilly state like Himachal Pradesh, financial assistance under Article 275(1) of the Constitution has been crucial in sustaining development works and welfare programmes. Referring to the recommendations of the Finance Commission, he warned that omission of the provision could result in an annual loss of nearly ₹10,000 crore, amounting to around ₹50,000 crore over five years. Bridging a 15 percent budgetary shortfall through internal resources alone, he said, would be practically unfeasible.

Chauhan informed that CM Sukhu has taken up the matter with the Union Finance Minister, presenting constitutional and financial arguments to safeguard the state’s interests. He appealed to opposition parties to rise above politics and collectively defend the state’s rights.

Clarifying reports about protests during the AI Summit, Chauhan said the youth were not opposing the summit itself but were voicing concerns over the proposed US-India trade agreement and its potential impact on agriculture and horticulture. He emphasized that peaceful protest is a democratic right and should not be termed anti-national.

Commenting on action by the Delhi Police in the state, he said that conducting operations without a warrant or prior intimation to local authorities was against established protocol. He maintained that the state government and the Himachal Pradesh Police acted within constitutional and federal norms, and that due legal procedures were followed before transit remand was granted.

Chauhan also expressed concern over the safety of 40,000–42,000 Himachalis residing in Gulf countries amid rising tensions between Iran and Israel. He said the state government is in constant contact with the Union Government, and a dedicated helpline and social media channel are being set up to assist affected families.

On the upcoming Rajya Sabha elections, he asserted that the current Assembly strength favours the Congress party and that the candidate will be decided by the party high command. He urged all political parties to uphold democratic traditions and ensure stability in the larger interest of the state.

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