Delay in disbursement of Vidhayak Nidhi funds, Himachal CM Sukhu blames ‘steep’ cut in Central grant

‘Our financial situation will get even tighter because the central government has restricted our borrowing capacity after we restored the Old Pension Scheme,’ says HP CM Sukhvinder Singh Sukhu.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu (File photo)

Citing the poor financial health of Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu Monday informed the Assembly that MLAs would have to wait for the third instalment of funds under the Vidhayak Ksetra Vikas Nidhi Yojna (VKVNY). He said the delay was unavoidable given the severe resource crunch the state is currently grappling with.

Sukhu further clarified that the government was also unable, for now, to release the revised salaries and allowances for MLAs, even though the Assembly had passed Himachal Pradesh Legislative Assembly (Allowances and Pension of Members) Amendment Bill, 2025, during the monsoon session earlier this year. The revised emoluments, he indicated, were unlikely to be disbursed for the “next couple of months”.

Responding to queries raised by Leader of Opposition and former chief minister Jai Ram Thakur during the Zero Hour, the chief minister attributed the state’s ‘precarious’ finances to the steep reduction in Revenue Deficit Grant (RDG) provided by the central government.

“During the tenure of the previous government, the state used to receive around Rs 11,000 crore annually as Revenue Deficit Grant. This amount has been slashed to just Rs 3,200 crore in the 2025-26 financial year,” Sukhu told the House.

He said the state was struggling to meet even routine expenditure and had been forced to impose cuts on multiple development funds. “Our financial situation will get even tighter because the central government has restricted our borrowing capacity after we restored the Old Pension Scheme (OPS). Recently, I urged the Union finance minister to allow a 2 per cent increase in our borrowing limit, and I will repeat that request. However, I do not have much hope from the 16th Finance Commission, as our per capita income has been shown to have increased,” he added.

Raising the issue of delays in the disbursement of VKVNY, Jai Ram Thakur said the government’s failure to release funds was exposing MLAs to public criticism. “Only Rs 24 lakh has been released so far for my constituency, Seraj. Such delays give people an opportunity to point fingers at their elected representatives,” he said.

The chief minister responded that the government hoped to release the next instalment of the Vidhayak Nidhi by January, depending on the state’s revenue position.

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During the discussion, Thakur also highlighted Himachal Pradesh’s strong performance in national sports, noting the achievements of cricketers Renuka Thakur and Sushma Verma. He pointed out that five women kabaddi players from Himachal have been selected for the 2025 Women’s Kabaddi World Cup, yet the state government has made no announcement of recognition or incentives for them so far.

In response, CM Sukhu said the government had previously given Rs 33 lakh per player during a South Asian tournament and assured the House that the current batch of Kabaddi players would be given “appropriate awards”.

Saurabh Parashar

Saurabh Parashar is a journalist with The Indian Express, where he primarily covers developments in Himachal Pradesh. He has been associated with The Indian Express since 2017 and has earlier worked with The Times of India. He has 17 year + experience in the field of print journalism. An alumnus of Government College for Men, Sector 11, (Panjab University), Chandigarh, Saurabh holds a Diploma in Journalism from Bhartiya Vidya Bhawan, Chandigarh. He pursued his Master’s in Mass Communication from Guru Jambheshwar University of Science & Technology, Hisar. In addition, he completed his law degree from Himachal Pradesh University (HPU), Shimla. ... Read More

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