An all-party meeting chaired by Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu on Thursday brought the growing political confrontation over the proposed discontinuation of the Revenue Deficit Grant (RDG) into sharp focus, underlining deep divisions between the Congress-led State Government and the BJP over what the Sukhu administration terms a “serious threat” to Himachal’s economic stability.
The meeting was convened to deliberate on the likely impact of the 16th Finance Commission’s recommendations, which propose ending RDG—a long-standing fiscal support mechanism for hill and resource-constrained states. Addressing the media after the meeting, Chief Minister Sukhu made it clear that the issue goes far beyond party politics and strikes at the core of Himachal Pradesh’s financial survival. He warned that the withdrawal of RDG could severely destabilize the State’s economy, already under pressure due to limited revenue-generating avenues and repeated natural disasters.
Launching a sharp attack on the BJP, the Chief Minister condemned the party for walking out of the meeting midway, calling the move “highly condemnable” and reflective of a lack of seriousness towards the State’s interests. Sukhu alleged that BJP leaders attended the meeting only under public pressure and used the platform to politicize the issue rather than to safeguard Himachal’s constitutional rights. He pointed out that while Congress was not alone in its stand, parties like the CPI(M), Aam Aadmi Party and Bahujan Samaj Party had shown willingness to collectively approach the Prime Minister to demand the reinstatement of RDG—something the BJP conspicuously avoided committing to.
Placing the financial debate in perspective, Sukhu contrasted the support received by successive governments. He stated that during the previous BJP regime, Himachal Pradesh received nearly ₹54,000 crore as Revenue Deficit Grant and around ₹16,000 crore as GST compensation. In contrast, the present Congress government has so far received only about ₹17,000 crore as RDG. Despite this sharp reduction, Sukhu asserted that his government, through fiscal discipline and administrative prudence, is steadily working towards making Himachal more self-reliant without compromising welfare commitments.
Reiterating the constitutional basis of the State’s demand, the Chief Minister emphasized that RDG is not a concession but a constitutional right under Article 275(1), designed to bridge the gap between a State’s revenue and expenditure. He reminded that this mechanism has existed since 1952 to protect financially weaker states. Sukhu asserted that the State Government knows how to fight for its rightful dues, but expressed concern that the BJP’s ambiguous position was weakening Himachal’s case at the national level.
Taking the political attack further, Sukhu said that BJP leaders appeared trapped in a dilemma—privately acknowledging that the withdrawal of RDG was not the right decision, yet lacking the courage to take a firm public stand against the Centre. He accused the BJP of consistently failing to stand with Himachal in times of crisis, citing the 2023 disaster when BJP legislators walked out even as the State sought a special relief package from the Union Government for disaster-hit families. According to Sukhu, the people of Himachal are closely watching what he described as the BJP’s “anti-Himachal attitude” and will eventually respond politically.
The Chief Minister stressed that while governments may change, protecting the rights and interests of the people must remain paramount. Parliamentary Affairs Minister Harshwardhan Chauhan and Congress National Spokesperson Kuldeep Singh Rathore echoed Sukhu’s criticism, accusing the BJP of undermining a serious and sensitive discussion by staging a walkout.
Significantly, the meeting saw unconditional support for the State Government from the CPI(M), Aam Aadmi Party and Bahujan Samaj Party. Former CPI(M) MLA Rakesh Singha underlined the hardships faced by the people of Himachal and called for political consensus to effectively defend the State’s interests. AAP representative Dr. Rajesh Chanana highlighted Himachal’s limited internal resources and formally submitted a party resolution supporting the demand for reinstatement of RDG. The BSP representative emphasized the need for a united political voice, noting that the State is still recovering from the economic impact of COVID-19 and two major natural disasters in the past three years.
As the RDG issue escalates into a major political flashpoint, Chief Minister Sukhu has positioned himself at the forefront of a broader, cross-party resistance, framing the debate as a fight for constitutional rights and economic justice for Himachal Pradesh. With the Centre yet to signal any rethink, the confrontation over RDG is set to dominate the State’s political discourse in the months ahead, testing not only federal relations but also the BJP’s standing in a hill state grappling with fiscal vulnerability.
