Shimla (Himachal Pradesh) [India], February 16 : In a development that underscored the widening rift between Raj Bhavan and the Himachal government, Governor Shiv Pratap Shukla on Monday declined to read the customary full Governor's Address on the opening day of the Budget Session of the HP Assembly.
Addressing the House briefly, Governor Shukla said, "I don't think I should read it," while specifically pointing out that the prepared address contained "comments on constitutional institutions." He stated that the remaining portion of the speech largely dealt with the achievements of the state government and its future roadmap, which he said the House could deliberate upon independently.
"The rest of the address consists of achievements of the government and future achievements that I am sure the House will deliberate on," the Governor remarked before concluding his short speech with greetings to the members.
The truncated address comes amid heightened political tension over the discontinuation of the Revenue Deficit Grant (RDG) to Himachal Pradesh following the recommendations of the 16th Finance Commission.
The issue of RDG dominated the prepared speech that the Governor chose not to read. According to the state government, the discontinuation of RDG has resulted in an annual loss of approximately Rs 10,000 crore to the state exchequer. RDG earlier constituted nearly 12.7 per cent of the state's total budget and was among the highest in the country.
Facing what it terms a severe financial crisis, the state government has submitted a proposal under Rule 102 to hold a discussion in the Assembly on the discontinuation of the Revenue Deficit Grant.
Official figures indicate that the state's own resources stand at around Rs 18,000 crore, while committed expenditure--including salaries, pensions, interest payments, loan repayments, subsidies and social security pensions--is approximately Rs 48,000 crore. The state's share in central taxes devolution is estimated at Rs 13,950 crore. After including borrowing of around Rs 10,000 crore, total available resources are projected at about Rs 42,000 crore, leaving a significant resource gap.
Until now, this gap was largely bridged through the Revenue Deficit Grant. However, with its discontinuation, the government has cited serious constraints in meeting budgetary allocations and sustaining developmental activities.
Concluding his brief remarks in the House, Governor Shukla said he had carefully gone through the address and encouraged members to read it in detail. "Honourable Members, I wish you all a happy and successful session," he said, before ending with "Jai Hind, Jai Bharat."
The incident is likely to intensify political debate during the Budget Session, with RDG and the state's financial position expected to dominate proceedings in the coming days.