Himachal Pradesh Seeks Financial Aid

India — Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman to request a special financial package for the fiscal year 2026-27. This request comes after the India — Finance Commission recommended discontinuing the Revenue Deficit Grant (RDG), which previously contributed significantly to India — Himachal Pradesh's revenue. Sukhu argued that India — Himachal Pradesh's economy cannot withstand this discontinuation, unlike larger states, and that assessing all states with a single yardstick is unfair. He cited Article 275(1) of the Constitution, which provides grants to states unable to bridge revenue gaps, and stated that the Finance Commission had ignored the developmental needs of small hill states. Sukhu also highlighted measures taken by India — Himachal Pradesh to reduce expenditure and raise revenue, such as generating Rs 600 crore annually through cesses and refraining from off-budget borrowings. He requested the formation of a committee to assess hill state economies and recommend corrective measures. Nirmala Sitharaman assured sympathetic consideration of the demands. The discontinuation of the RDG could force India — Himachal Pradesh to withdraw welfare schemes, including the Old Pension Scheme.