Former Himachal CM Dhumal Blames State Government for Impending Fiscal Crisis
In a sharp critique of the current administration, former chief minister and senior Bharatiya Janata Party (BJP) leader Prem Kumar Dhumal stated on Monday that the fiscal crisis emerging from the discontinuation of the revenue deficit grant (RDG) was not a sudden development. Instead, he argued, it results from long-foreseen challenges that have been consistently ignored by the state government.
Phased Withdrawal of RDG Was Clearly Indicated
Dhumal emphasized that the phased withdrawal of the RDG was explicitly outlined in the recommendations of the Finance Commission. This critical financial support is scheduled to conclude after March 31, 2026. He criticized the state government for failing to devise and implement alternative revenue strategies and robust financial management practices, despite having ample advance notice.
Drawing from his own experience as chief minister, Dhumal stressed that addressing fiscal challenges requires timely and disciplined action. He claimed that during his tenure, his administration successfully controlled discretionary spending, minimized unnecessary official travel, and enforced frugality across all government levels.
Current Expenditure Trends Under Fire
The BJP functionary also took aim at current expenditure patterns, noting that the appointment of numerous advisors and office-bearers, along with the procurement of vehicles, starkly contradicts principles of financial discipline. He called for immediate measures to enforce strict expenditure control, prioritize essential spending, and strengthen overall financial management to avert a deeper crisis.
Centre–State Relations and Special Packages
On the topic of Centre–state relations, Dhumal pointed out that Himachal Pradesh has consistently benefited from special packages under BJP-led governments at the national level. This historical support, he suggested, underscores the importance of proactive planning and collaboration to navigate fiscal transitions effectively.
The former chief minister's remarks highlight growing concerns over fiscal sustainability in Himachal Pradesh, urging the state government to take corrective actions before the RDG grant fully phases out in 2026.
