Himachal to convene special session on the issue of discontinuation of RDG

Under the recommendations of the 15th Finance Commission, Himachal Pradesh was sanctioned a total Revenue Deficit Grant of approximately Rs 37,199 crore for the period 2021–22 to 2025–26.

2 min readFeb 5, 2026 10:48 AM IST

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu

The Himachal Pradesh government Wednesday decided to convene a special Assembly session over the discontinuation of the Revenue Deficit Grant (RDG) for the state. The government also decided to levy land revenue on all power projects operating in the state.

Chief Minister Sukhvinder Singh Sukhu said, “We have called a Cabinet meeting on February 8 to fix the date for the special Assembly session, particularly on the issue of the discontinuation of RDG. We have also decided to convene a meeting of all legislators, including BJP MLAs, to discuss this issue after the February 8 Cabinet meeting. BJP leaders should not make it a political issue. It concerns the rights of Himachal Pradesh.”

Sources said, “The special Assembly session will be convened before the state’s 2026–27 Budget Session, which is scheduled to be held in the last week of February. The special session will be called with the approval of Governor Shiv Pratap Shukla.”

“I never imagined, even in my dreams, that the RDG would be completely stopped. We are going to face financially difficult times. Between 2021 and 2026, our state received approximately Rs 40,000 crore in the form of RDG, and all of a sudden that grant has been stopped. Today, I decided to levy land revenue on all power projects, including hydropower projects, in Himachal Pradesh,” Sukhu added.

Reacting to the BJP leaders including MP Anurag Thakur, Sukhu said, “BJP leaders should not include Himachal among 17 states for which the RDG was also discontinued. Himachal is far away in the view of infrastructure and it is not consumed based state.”

Under the recommendations of the 15th Finance Commission, Himachal Pradesh was sanctioned a total Revenue Deficit Grant of approximately Rs 37,199 crore for the period 2021–22 to 2025–26. The year-wise allocation included Rs 10,249 crore in 2021–22; Rs 9,377 crore in 2022–23; Rs 8,058 crore in 2023–24; and Rs 6,258 crore in 2024–25. An additional Rs 3,257 crore is scheduled to be released by March 31, 2026, after which the grant will be completely discontinued.

The 16th Finance Commission, in its report tabled in Parliament last Sunday, favoured the discontinuation of the RDG, noting that in its memorandum to the Commission, the central government had advocated ending the grant.

Saurabh Parashar

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

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