Shimla (Himachal Pradesh) [India], February 11 : Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Wednesday urged BJP leaders to take up the issue of Revenue Deficit Grant (RDG) with Prime Minister Narendra Modi, asserting that the discontinuation of RDG would severely impact the hill state's economy.
Speaking to the media in Shimla on his return from a short visit to Delhi, Sukhu said he had met former Union Finance Minister P Chidambaram after a party organisation meeting and had briefed him on the state's financial condition and the reforms undertaken by his government.
"In Delhi, after the Sangathan meeting, I met former Finance Minister P Chidambaram. I informed him that we have undertaken 'Vyavastha Parivartan' (systemic change) and implemented structural reforms, keeping the state's financial situation in view. He said that it was good that we initiated these changes at the very beginning," Sukhu said.
Detailing the fiscal challenges inherited by his government, the Chief Minister said, "When I became CM, officers told me that the state had loans of Rs 75,000-76,000 crore and liabilities of Rs 10,000 crore. Despite these liabilities, we changed the structure, amended rules and laws, and through 'Vyavastha Parivartan' checked leakages and earned Rs 3,800 crore."
On the RDG issue, Sukhu said Chidambaram expressed surprise over its discontinuation. "RDG is meant for hill and small states to bridge the gap between income and expenditure. He said it is surprising that RDG has been stopped. He has sought detailed information and assured that he will take up the issue," Sukhu said.
The Chief Minister asserted that RDG is the state's constitutional right. "From 1952 onwards, state-specific grants have been provided to bridge fiscal gaps. Ending RDG is not in the interest of small states. RDG is our right--we will pursue legal options if needed," he said.
At the same time, he called upon BJP leaders to press for the state's interests. "Instead of blaming me, Jai Ram Thakur should lead a delegation of MLAs to meet the Prime Minister and demand Himachal's rights that have been snatched. Between 2026 and 2031, the state will suffer an annual loss of Rs 10,000 crore. This will affect the economy of the state," he said.
Sukhu added, "I want to tell BJP leaders, including Bindal and Thakur, instead of cursing me, meet the leadership in Delhi and urge them that RDG be given to the state. We are running the government even without RDG."
Responding to criticism over advisers, the Chief Minister said, "Our advisers are half in number compared to the previous government. They are experts and contribute effectively. Don't blame us. The wasteful expenditure happened during your tenure, including Jan Manch events where officers were humiliated."
Highlighting fiscal measures his government has taken, Sukhu said strict cost-cutting measures had been implemented. "We have downsized bureaucracy, reducing IFS officers from 110 to 86. We have cut unnecessary expenditure. Earlier, MLAs paid Rs 100 for rooms at Himachal Bhawan; now the rates have been increased to match others. Electricity subsidies for them have been stopped. Fiscal discipline means plugging expenditures and increasing revenue--we have earned Rs 3,800 crore through excise auctions, Wildflower Hall, and JSW-related decisions," he said.
Referring to the financial stress flagged by the Finance Department, Sukhu reiterated that no posts would be abolished. "Despite fiscal challenges, I assure you that we will not abolish any posts, and the youth will continue to get employment opportunities. I know what steps are required to make Himachal self-reliant, and we have already initiated them," he said.
He acknowledged that loans are being taken to service past debt. "We are taking loans to repay loans. We are raising Rs 10,000 crore to repay liabilities of Rs 13,000 crore. Had the previous BJP government repaid loans responsibly, the situation would have been manageable," he said.
The Chief Minister also criticised the previous BJP regime, alleging fiscal mismanagement. "The BJP government received Rs 54,000 crore as RDG, while we got Rs 17,000 crore. Despite that, we cleared arrears of over Rs 17,000 crore, including dues pending for more than 70 years and 70% career arrears of Class IV employees," he said.
Highlighting Himachal's ecological contribution, Sukhu said, "Our 'Jal, Jungle, and Zameen' are our assets. As per a study by the Indian Institute of Forest Management, Himachal contributes Rs 90,000 crore worth of ecological services to the nation."
Reiterating his stand, the Chief Minister said, "This is not about politics. Governments come and go, Chief Ministers come and go, but we must face reality. Ending RDG is not in the state's interest. It is our constitutional right, and we will continue to seek our rightful share." He said.