Shimla, Himachal Pradesh: In an unexpected development during the budget session of the Himachal Pradesh Vidhan Sabha, Governor Shiv Pratap Shukla concluded what was expected to be a 50‑page address in barely three minutes, omitting key controversial sections prepared by the state government. The skipped parts focused on the Revenue Deficit Grant (RDG) a critical fiscal support issue for the hill state that has sparked intense debate.
The governor began the customary address to the state legislature on February 16 but read only the opening paragraphs that outlined the session agenda, including supplementary demands and the upcoming budget for 2026‑27. He then abruptly concluded his speech, saying the longer text contained references to constitutional matters that he preferred not to read. The key sections relating to the RDG controversy and concerns over its discontinuation were left unspoken.
The portions that were omitted reportedly dealt with the 16th Finance Commission’s decision to discontinue the RDG, which has financial implications for smaller and special category states like Himachal Pradesh. These paragraphs emphasised that removing RDG would hurt the state’s ability to fund development projects, welfare schemes and disaster management efforts. This grant has been a consistent feature under successive Finance Commissions, and its removal has triggered political debate and public concern.
While the governor’s decision avoided directly engaging with the contentious issue, it is expected to shape discussions and debates during the three‑day budget session. The state government and opposition are likely to square off over the RDG discontinuation — a topic that has drawn significant attention from both officials and the public in recent weeks. The controversy reflects ongoing fiscal tensions between the state and the Centre over resource allocations.
Himachal Pradesh’s leadership has publicly criticised the removal of the RDG, calling it a threat to the state’s financial stability. Chief Minister Sukhvinder Singh Sukhu and his government have accused the Centre of undermining the state’s fiscal needs by not advocating for continued RDG support. For years, the grant under Article 275(1) of the Constitution helped bridge the gap between revenue and essential expenditure, especially in hilly states with limited revenue‑generating capacity.
By sidestepping the critical RDG sections in the governor’s address, the immediate legislative focus may shift to how the Vidhan Sabha tackles the budget in light of the absent central assistance and looming financial challenges. The legislature could see heated discussions and calls for unified political approaches to press the Centre on RDG reinstatement. Analysts say the omission sets the tone for what promises to be a politically charged session.
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