Shimla, Feb 1 (AHN) Expressing disappointment over the Union Budget 2026-27, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Sunday described it as an anti-poor and anti-farmer budget and said “it ignores the interests of key sections of society”.

Describing it as inequitable, the Chief Minister said Finance Minister Nirmala Sitharaman has completely overlooked the concerns and priorities of the state. He raised concerns regarding the recently tabled 16th Finance Commission (FC-XVI) Report for 2026-31.

The Chief Minister voiced disappointment over the Commission's failure to provide meaningful Revenue Deficit Grants (RDGs) for the state despite repeated representations, detailed memoranda and technical submissions. Besides, the Finance Commission has not recommended RDGs for small states, including Himachal Pradesh, which he termed a deeply disappointing decision and termed it as an injustice, hurting the sentiments of the people.

In a statement, the Chief Minister said Article 275(1) of the Constitution provides for state-specific grants from the Union Government, also known as RDG. From 1952 up to the 15th Finance Commission, these grants were regularly provided by the Centre to the states. However, for the first time, the 16th Finance Commission has discontinued this grant.

He said under the 15th Finance Commission, Revenue Deficit Grants amounting to approximately Rs 37,000 crore were provided. The CM further noted that after the completion of the 14th Finance Commission, when there was a delay in the submission of the 15th Finance Commission’s report, assistance of Rs 11,431 crore was still provided on the basis of an interim report during the tenure of the previous BJP government.

“It is sad that this omission overlooks structural fiscal handicaps, including high forest and ecological cover of about 67 per cent, higher per-capita cost of service delivery in mountainous terrain and repeated natural disasters causing losses exceeding Rs 15,000 crore in recent years,” the Chief Minister remarked.

Himachal Pradesh had anticipated targeted support for hill-specific priorities such as hydropower development, eco-tourism, road and rail connectivity and compensation for revenue losses arising from GST implementation.

CM Sukhu said the absence of adequate RDGs will constrain Himachal Pradesh's ability to deliver essential public services, maintain fiscal sustainability and invest in future growth, potentially forcing difficult choices between service delivery and increased indebtedness.

As a special category hill state, Himachal Pradesh faced unique challenges due to its difficult terrain, fragile ecology, frequent natural disasters and a limited own-revenue base. In this context, he said, stronger fiscal support, particularly a clear framework for continued RDGs beyond the current Finance Commission period, is critical for maintaining fiscal balance, delivering essential public services and sustaining social welfare commitments.