Himachal CM Sukhu Unveils ₹54,928-Crore Budget for 2026-27
Himachal CM Sukhu Unveils ₹54,928-Crore Budget for 2026-27
Himachal Pradesh's budget for 2026-27 stands at ₹54,928 crore, with the discontinuation of the revenue deficit grant cited as a major setback and new tourism investments planned.
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday presented a ₹54,928-crore budget for 2026-27 and blamed the discontinuation of the revenue deficit grant for annual losses of ₹8,105 crore. The budget speech was disrupted by sloganeering from opposition BJP members after he accused them of not siding with the state on the issue of the RDG, which had helped bridge the gap between revenue and expenses. The clash underscored a tense budget session as lawmakers debated the finances of a hill state with limited resources. Sukhu argued that global conflicts and rising LPG prices, tied to the broader U.S.-Israel-Iran dynamics, were affecting the state’s economy and highlighted the need for continued state support from the centre.
The new budget marks the first time the size has been reduced, from ₹58,514 crore this ongoing fiscal year to ₹54,928 crore, a cut of ₹3,586 crore. Despite the reduction, the government said it would push ahead with strategic investments, including a plan to invest ₹3,000 crore in tourism and to woo industry, aiming to unlock growth in the sector and create jobs. Sukhu also defended the state’s approach, saying a direct comparison with Uttarakhand and Assam misses Himachal’s unique geography and resource base, and that the state must be treated as the “lung of north India” deserving a green bonus. He stressed that the green economy and sustainable development would be central themes of the budget, even as the RDG dispute loomed large over the fiscal outlook.
This is Sukhu’s fourth budget as chief minister, and he framed the document as a pragmatic, growth-oriented plan built on targeted investments, rational spending, and a focus on tourism, energy, and social welfare programs. He also highlighted efforts to balance the books amid external pressures while reassuring stakeholders that the government remains committed to safeguarding the state’s finances and long-term development goals.
