Himachal Pradesh Budget Session Begins Amidst RDG Discussions

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Shimla, February 15 Discussions on discontinuing the revenue deficit grant and its impact on the state economy are likely to dominate the three-day Himachal Pradesh Budget session, which will begin with the Governor's address on Monday.

Addressing journalists here on Sunday after a meeting with the press gallery, Himachal Pradesh Vidhan Sabha Speaker Kuldeep Singh Pathania said, "So far, 125 notices, including 111 oral (starred) and 14 written, have been received from the government, along with one call attention notice under Rule 62 and one for discussion on the revenue deficit grant (RDG) under Rule 102.

A decision on whether the Budget session, scheduled from Monday to Wednesday, will continue or resume after a break will be taken in due course, the speaker said.

As it is the Budget session, government business will take priority over other matters, he added.

The Congress government, led by Chief Minister Sukhvinder Singh Sukhu, will hold discussions on the economic impact of discontinuing the RDG, as per the recommendations of the sixth finance commission.

The CM had earlier maintained that the abolition of the revenue deficit grant (RDG) would deprive the state of approximately Rs 10,000 crore annually between 2026 and 2031, and would significantly impact the annual budget of Himachal Pradesh, as 12.7 per cent of the state budget comes from the RDG.

The revenue of Himachal Pradesh, including state's resources (Rs 18,000 crore), share in central taxes (Rs 13,950 crore) and borrowings (Rs 10,000 crore) is Rs 41,950 crore, while the committed expenditure is Rs 48,000 crore, leaving a gap of Rs 6,050 in the state's revenue and expenditure.

Leader of the opposition Jai Ram Thakur maintained that the discontinuation of RDG is not a sudden decision, but part of the structured recommendations of previous Finance Commissions, where it was clearly indicated that such grants would be reduced in phases and eventually discontinued.

Meanwhile, in view of possible protests, demonstrations, rallies, and other activities during the Assembly Session, the Assembly complex and surrounding areas have been divided into four police sectors, the police said.
 

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