Himachal Assembly Passes Resolution Against Revenue Deficit Grant Discontinuation
The legislative assembly of Himachal Pradesh passed a significant resolution on Wednesday, formally opposing the discontinuation of the revenue deficit grant (RDG) based on the recommendations of the 16th Finance Commission. The resolution, moved by the state government under Rule 102, will now be forwarded to the central government with a request to continue the crucial financial assistance.
Voice Vote Amid Opposition Protests
The resolution was approved by voice vote despite strong opposition from 28 BJP legislators in the 68-member House. The refusal of the opposition benches to support the motion led to noisy scenes and intense sloganeering on the final day of the first phase of the budget session. Chief Minister Sukhvinder Singh Sukhu delivered a detailed reply following three days of extensive discussion on the issue, after which the resolution was passed.
Speaker Kuldeep Singh Pathania subsequently adjourned the House until 11 am on March 18, when the second phase of the budget session is scheduled to commence.
Constitutional Background and Financial Concerns
According to the resolution, Himachal Pradesh has been receiving the revenue deficit grant under Articles 275 and 280 of the Constitution from the 5th to the 15th Finance Commission. However, following the recommendations of the 16th Finance Commission, this grant is set to be discontinued starting from the upcoming financial year.
The state government has issued a stern warning that this move could plunge the hill state into a severe financial crisis, given its challenging mountainous terrain and limited revenue-generation capacity. The discontinuation threatens to destabilize the state's economic framework and hinder development projects.
Heated Political Exchanges and Accusations
During the debate, BJP members led by Leader of the Opposition Jai Ram Thakur accused the ruling Congress government of politicizing the issue instead of safeguarding the state's interests. They alleged fiscal mismanagement by the state administration, which led to heated exchanges, disruptions, and an adjournment. Protests even spilled outside the assembly premises, highlighting the intensity of the disagreement.
Later, Congress legislators, led by Chief Minister Sukhu, raised slogans outside the House against the BJP for not supporting the resolution to protect the state's constitutional rights. This demonstration underscored the deep political divide over the financial matter.
Chief Minister's Plan for Delhi Visit
Sukhu announced that he and his cabinet colleagues would travel to Delhi to meet the party high command and discuss the issue in detail. The Chief Minister further revealed that he had already sought an appointment with the Prime Minister, requesting personal intervention to resolve the matter. This move indicates the state government's determination to escalate the issue to the highest levels of central authority.
Speaker Highlights Session Productivity
Meanwhile, Speaker Kuldeep Singh Pathania highlighted that the first phase of the budget session recorded an impressive 124% productivity. Over three sittings lasting 18 hours and 24 minutes, the government responded to 34 questions, including 24 starred and 10 unstarred queries. Ten issues were also raised during Zero Hour and addressed by the concerned ministers, demonstrating active legislative engagement.
Revenue Minister's Strong Accusations
Earlier in the day, Revenue Minister Jagat Singh Negi made strong statements, claiming that the 16th Finance Commission poses a threat to the country's unity and integrity. He accused it of acting as a "puppet" of the BJP-led central government in discontinuing the crucial revenue deficit grant to states, including Himachal Pradesh.
Raising the issue during a debate on a government resolution condemning the move, Negi questioned whether the BJP intended to divide the country again and make Himachal a Union Territory, similar to what was done with Jammu and Kashmir and Ladakh.
He accused the Centre of choking funds to Himachal Pradesh, pointing out that the state is still awaiting Rs 1,500 crore in monsoon disaster relief announced by the Prime Minister last year. Negi emphasized that the central government is constitutionally obligated to provide grants to states lacking sufficient revenue resources.
Addressing the opposition BJP MLAs, Negi urged them to defend the state's right to the revenue deficit grant, warning that opposing it would be acting against Himachal's interests. He also noted that the friction between the Centre and the state arises because Himachal is governed by the Congress, while the Centre is led by the BJP.
BJP Legislator Counters with Allegations
BJP legislator from Karsog, Deep Raj, accused the state government of "sensationalizing" the revenue deficit grant issue by twisting facts after its own fiscal mismanagement. He stated that the finance secretary had warned that scrapping the RDG would stall state projects and schemes and delay payment of dearness allowance and arrears to employees. However, days later, the Chief Minister clarified that no work would be halted.
Raj alleged that Sukhu spread misleading claims in election-bound states and abroad, asserting that Himachal would become the richest state by 2032. With the discontinuation of the revenue deficit grant, he argued, the truth about the state's finances has been exposed, revealing underlying economic challenges.
