Assembly passes resolution for continuation of Revenue Deficit Grants: Sukhvinder Sukhu slams Jai Ram Thakur over change in stance on RDG
LoP acknowledges discontinuation of the central grant a ‘concern’.
(File Photos) On the concluding day of the first leg of the Budget session, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu launched a sharp attack on the Opposition, citing past representations made by Leader of Opposition (LoP) and former chief Minister Sukhvinder Singh Sukhuminister Jai Ram Thakur before the Finance Commission of India in support of Revenue Deficit Grants (RDG) for the hill state.
Reading from documents on the floor of the House during the three-day session on Wednesday, Sukhu said Thakur had strongly advocated for continuation and enhancement of RDG before the 15th Finance Commission, terming it crucial for Himachal’s fiscal stability and development.
As the Chief Minister’s remarks continued, Opposition MLAs trooped into the Well of the House, raising anti-government slogans. Speaker Kuldeep Singh Pathania adjourned proceedings for 10 minutes, but disruptions resumed when the House reassembled. Meanwhile, the resolution under Rule 102, urging the Centre to continue the RDG for the grants period 2026-31, was passed amid the uproar.
The Speaker then adjourned the House proceedings till March 18.
Earlier, Sukhu cited at least two presentations made by Thakur before the Commission — on March 26, 2012, and March 13, 2020 — where he had highlighted the state’s difficult geographical conditions and chronic revenue deficit.
“Jai Ram Thakur had then argued that Himachal, being a revenue-deficit state, depends heavily on central support and must receive adequate RDG under constitutional provisions,” Sukhu said, questioning why the Opposition leader’s stand has “changed now.” He further referred to the LoP submissions before the 16th Finance Commission chairman, Dr Arvind Panagariya, where he had reportedly urged that Himachal should not be compared with larger states due to its limited revenue-generation capacity and high expenditure needs.
Sukhu said he himself had met the Finance Commission multiple times to press for the state’s interests. “We were assured that tapering of RDG would be gradual. If RDG is stopped, it would be a black day in Himachal’s history,” he said.
Emphasising the constitutional basis of such grants, Sukhu said Revenue Deficit Grants flow from provisions under Articles 275 and 280 of the Constitution and are a right of the state, not charity. He also referenced Constituent Assembly debates, including views expressed by Dr B R Ambedkar on fiscal federalism.
The Chief Minister said he had invited Opposition leaders for consultations and convened an all-party meeting on the issue, but alleged a lack of cooperation.
Citing financial data, Sukhu said the previous BJP government earned Rs 55,564 crore as state’s own revenue between 2017 and 2022, while his government had generated Rs 50,520 crore in three years. He added that his administration had taken loans of Rs 35,482 crore and repaid Rs 27,043 crore, besides securing about Rs 17,000 crore in RDG.
Centre attempting to ‘kill federal structure’: Negi
Revenue Minister Jagat Singh Negi on Wednesday also targeted the Centre and the Opposition over the issue of Revenue Deficit Grants (RDG), alleging that the Union government was attempting to “kill the federal structure” of the country. Speaking in the House, Negi described the Finance Commission of India — particularly the 16th Finance Commission — as functioning like a “puppet” in the hands of the central government.
Negi, who represents the tribal constituency of Kinnaur in the Assembly, also referred to activist Sonam Wangchuk during his address. “See the manner in which the central government has branded a patriot like Sonam Wangchuk as anti-national,” he said.
Finance Commission took decision on the basis of national situation: Thakur
Meanwhile, speaking to reporters outside the House, Thakur accepted the fact that the discontinuation of RDG is a concern for the BJP but he does not agree on the way in which the state government wants to pursue this issue.
“We will definitely go to Delhi and will put our stand before the concerned authorities. The central government, 16th Finance Commission has taken the decision on RDG keeping in view the national situation, not the condition of Himachal Pradesh,” he added.
When asked about the three-day long session, the LoP said that is for the first time when the business in the House was started without reading the motion of Thanks to the speech of the Governor in the House. “It is also a matter of concern that the Governor had concluded the speech merely in a few minutes,” he added.
Himachal Pradesh BJP president Rajiv Bindal said spreading false narratives on the Revenue Deficit Grant and central aid.
“Despite receiving nearly Rs 27,000 crore in RDG and crores more rupees under various heads in the last three-and-a-half years, institutions are being closed in Himachal Pradesh and development has come to a standstill,” the BJP chief said in a statement.
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