Shimla (Himachal Pradesh) [India], February 6 : Former Himachal Pradesh Chief Minister and Leader of Opposition, Jai Ram Thakur on Thursday welcomed the Union Budget, calling it a "people's budget" and a "budget for a Developed India," while strongly criticising the Congress-led Himachal Pradesh government for what he described as "false guarantees and irresponsible promises" that have pushed the state into a severe financial crisis.
Addressing a press conference in Shimla, Thakur said that the present state government's guarantees have "completely devastated the economy of Himachal Pradesh," adding that over-borrowing had further worsened the situation. He said the state now requires "tough and corrective decisions" to come out of the crisis.
Congratulating Prime Minister Narendra Modi for presenting the Union Budget for the 13th consecutive time with the vision of Viksit Bharat 2047, Thakur also congratulated Union Finance Minister Nirmala Sitharaman for presenting the budget for the ninth time, calling it a historic moment. He said the total budget size reflects India's growing economic strength and its respectable position on the global economic map.
"This budget is not about populist announcements. The focus is on creating a strong infrastructure base so that the country becomes economically powerful in the long run," Thakur said.
He said that when Prime Minister Modi took charge in 2014, India's economy was ranked 11th in the world, whereas today it stands at the fourth position globally. "Earlier, India was known as a fragile economy. There was even a time when the country had to pledge its gold. Today, India is moving forward with confidence," he said, adding that this transformation was possible because of visionary leadership and bold decisions.
Referring to recent global trade challenges, Thakur said India successfully countered adverse tariff measures imposed internationally. He said that after discussions between Prime Minister Modi and the President of the United States, tariffs were reduced from 50 per cent to 18 per cent, calling it a historic diplomatic and economic achievement. "Today, India stands firmly with the world community," he said.
Speaking specifically about Himachal Pradesh, Thakur said the state has benefitted significantly from the Centre's policies. He said the tax devolution share of Himachal Pradesh has increased from 0.82 percent to 0.91 percent, which would raise the state's receipts from Rs 11,561 crore to Rs 13,950 crore in 2026-27, an additional gain of Rs 2,390 crore. He added that nearly Rs 1,500 crore more would be received from various projects, calling it a major relief for the state.
He recalled that after 2014, the Centre increased its share in centrally sponsored schemes for hill states like Himachal Pradesh from 60:40 to 90:10. "This decision was taken keeping in mind the special needs of hill states," he said.
On the issue of Revenue Deficit Grant, Thakur said the 15th Finance Commission had clearly stated that RDG would not continue indefinitely. "We presented Himachal Pradesh's case strongly before the 15th Finance Commission and secured maximum benefit for the state. The present Congress government failed to effectively present the state's case before the 16th Finance Commission," he said.
He said the decision to phase out RDG was applicable to all states and not specific to Himachal Pradesh. He added that even Congress-ruled Karnataka had opposed continuation of RDG during its presentation before the Finance Commission. "Despite this, the Congress leadership is misleading the people of Himachal Pradesh," he said.
Thakur accused the state government of sending contradictory messages to the public. "On one hand, they claim guarantees have been fulfilled, and on the other, they say remaining guarantees will be completed later. The reality is that these guarantees are unsustainable," he said.
He warned that the state's financial condition has deteriorated to the point that paying salaries and pensions could become difficult, while development work has come to a standstill. He alleged that MLA priority funds have been frozen and treasury payments have been halted.
Thakur also criticised the state government for approaching the Supreme Court against the High Court's direction to hold Panchayati Raj elections before April 30. "This is the first time in Himachal Pradesh's history that Panchayat elections are being delayed. This is an attack on the strongest pillar of democracy," he said.
He further termed the Chief Minister's remarks on the High Court as serious and falling under the category of contempt of court.
Thakur said most development works in Himachal Pradesh are being carried out with financial support from the Centre, including roads, highways, railways, NABARD and World Bank-funded projects. "The state government must acknowledge this support instead of blaming the Centre," he said.
He challenged the Chief Minister to clearly explain how Himachal Pradesh would become self-reliant by 2027. "The people of Himachal Pradesh are waiting for answers," Thakur said.