Himachal Budget session starts on Monday, revenue deficit grant likely to dominate discussions

Shimla, Feb 15 (PTI) Discussion on discontinuation of revenue deficit grant and its impact on the state economy is likely to dominate the three-day Himachal Pradesh Budget session, which will commence with the governor's address on Monday.

Addressing mediapersons here on Sunday after meeting of the press gallery, Himachal Pradesh Vidhan Sabha Speaker Kuldeep Singh Pathania said "so far 125 notices through questions including 111 oral (starred) and 14 written have been received besides one call attention notice under Rule 62 and one for discussion of revenue deficit grant (RDG) under Rule 102 from the government.

A decision on whether the Budget session -- scheduled from Monday to Wednesday -- will continue or resume after a break would be taken in due course, the speaker said.

As it is the Budget session, government business will take priority over other matters, he added.

The Congress government, led by Chief Minister Sukhvinder Singh Sukhu, will hold discussion on the economic impact of discontinuation of the RDG as per the recommendations of the sixth finance commission.

The CM had earlier maintained that abolition of revenue deficit grant (RDG) would deprive the state of about Rs 10,000 crore annually between 2026 and 2031 and would significantly impact the annual Budget of Himachal Pradesh as 12.7 per cent of the state Budget comes from the RDG.

The revenue of Himachal Pradesh, including state's resources (Rs 18,000 crore), share in central taxes (Rs 13,950 crore) and borrowings (Rs 10,000 crore) is Rs 41,950 crore while the committed expenditure is Rs 48,000 crore, leaving a Rs 6,050 gap in the state's revenue and expenditure.

Leader of opposition Jai Ram Thakur maintained that discontinuation of RDG is not a sudden decision but part of the structured recommendations of previous Finance Commissions, where it was clearly indicated that such grants will be reduced in phases and eventually discontinued.

Meanwhile, in view of possible protests, demonstrations, rallies, and other activities during the Assembly Session, the Assembly complex and surrounding areas have been divided into four police sectors, police said. PTI BPL TRB