Himachal Pradesh Assembly Sees Heated Debate Over Revenue Deficit Grant Support

On the second day of the Budget Session of the Himachal Pradesh Assembly on Tuesday, Deputy Chief Minister Mukesh Agnihotri and Leader of the Opposition Jai Ram Thakur sparred over the issue of Revenue Deficit Grant (RDG) and the Centre’s fiscal support to the hill state. Participating in a discussion under Rule 102, Agnihotri, carrying a copy of the Constitution, cited Article 275(1), which provides for special grants to states facing financial stress and struggling to overcome fiscal liabilities. “The provision justified Himachal Pradesh’s demand for the continued RDG support,” he said. “Whenever we secured grants from Union ministers for Himachal, they told us that ‘your local BJP leaders will not be happy with it’,” Agnihotri said as Opposition BJP MLAs protested his remarks. Agnihotri further said the state government was fully aware that only the Prime Minister could intervene in the RDG issue. “We urge Prime Minister Narendra Modi to step in. Today, the state’s income is around Rs 18,000 crore, while our liabilities stand at nearly Rs 37,000 crore. RDG is not merely a grant; it is the right of Himachal,” the Deputy CM said. Agnihotri argued, “Himachal Pradesh cannot be equated with 16 other states, including Uttarakhand and Assam. Our circumstances are completely different.” Taking a direct swipe at the Opposition, the Deputy CM questioned the LoP’s silence: “Why are you not outraged when the Centre is going to snatch nearly Rs 55,000 crore that rightfully belongs to Himachal Pradesh?” Agnihotri further said the Union government’s fiscal decisions were adversely impacting the state. “The withdrawal of GST compensation is an attempt to strangulate Himachal Pradesh. Our GST compensation is already very low. Moreover, the recent India-US trade deal will negatively impact our apple economy,” he said. Countering Agnihotri’s claims, Thakur questioned the Congress government’s stand: “Why are you silent on Karnataka’s response, which advocated discontinuation of RDG?” To this, Agnihotri said, “Karnataka’s position stemmed from its minimal dependence on the grant. Karnataka is a large state and was receiving barely one per cent of RDG. That is why it was not affected by the proposed withdrawal.” Other BJP MLAs also joined the debate, asserting that RDG was conceived as a temporary fiscal support mechanism and not a permanent entitlement, further intensifying the political exchange in the House. BJP MLAs said, “The Congress also has a Leader of the Opposition in the Lok Sabha, who roamed around the country carrying copies of the Constitution of India. Sadly, without reading it.” Later, talking to the media, Jai Ram said the incumbent government has loans worth Rs 45,000 crore in just three years. The LoP said during his government’s tenure, the loan payout ratio was 95 per cent, while in the first two years it was 130 per cent, despite facing the difficult Covid-19 pandemic. Jai Ram said, “A government that failed to even provide tarpaulins to disaster-affected people could not imagine the horrific situation that arose during a pandemic like Covid-19. Instead of framing new welfare schemes for the people of the state, the Congress government focused on withdrawing them.” Thakur accused the government of harassing the state’s 7.5 million residents at multiple levels. “The government has failed to provide even basic medical treatment to patients. It has also been unable to disburse Sahara pensions to completely destitute individuals,” he added. He pointed out that for the past three years, claims were being made that Himachal Pradesh would become self-reliant by 2027 and the most prosperous state by 2032. “Then one fine day, they say they will not even release funds for the Himcare and Shagun schemes. After being in power for three years, are they still unaware of the state’s financial condition?” the LoP questioned. Thakur said, “The state’s welfare cannot be ensured by running the government in such a manner. He said the chief minister should give up petty politics and work like a true leader for the development of the state.”