Himachal Pradesh Reports Significant Revenue Generation from Internal Resources
Chief Minister Sukhvinder Singh Sukhu announced on Saturday that the state government of Himachal Pradesh has successfully earned Rs 26,683 crore from its own resources over the past three years. This achievement highlights the state's efforts to bolster its financial independence amid challenging economic conditions.
Key Revenue Sources and Financial Highlights
Among the notable contributions to this revenue, the state secured approximately Rs 401 crore from acquiring ownership of the iconic Wildflower Hall Hotel. This acquisition is projected to yield an annual income of around Rs 20 crore, providing a steady stream of funds for future development projects.
Additionally, the government's negotiations have led to an increase in the royalty share for the Karcham-Wangtoo Hydropower Project from 12% to 18%. This adjustment is expected to generate an extra Rs 150 crore per year for the state, further enhancing its revenue base.
Concerns Over Discontinued Financial Grants
During interactions with MLAs from Kullu, Mandi, and Shimla districts, CM Sukhu expressed deep concern over the discontinuation of the Revenue Deficit Grant (RDG) by the 16th Finance Commission. Under the 15th Finance Commission, Himachal Pradesh received a total of Rs 37,199 crore as RDG, distributed in decreasing amounts over recent years:
- Rs 10,249 crore in 2021-22
- Rs 9,377 crore in 2022-23
- Rs 8,057 crore in 2023-24
- Rs 6,249 crore in 2024-25
- Rs 3,257 crore in 2025-26
The cessation of this grant is anticipated to result in a substantial loss of nearly Rs 50,000 crore for the state. Sukhu emphasized that this decision is particularly unjust for a hill state with difficult geographical terrain, as it could severely impact development works, welfare schemes, and the timely payment of salaries and pensions.
Tourism and Development Priorities Discussed
Despite Himachal Pradesh being home to world-famous tourist destinations, the CM noted that no specific budgetary provisions have been allocated for tourism development. He also criticized the exclusion of the state from the "Buddhist Circuit" announced in the Union Budget 2026-27, labeling it as discriminatory treatment towards a major centre of Buddhist culture.
The MLA Priority Meetings focused on various constituency-specific development issues. Key demands from MLAs included:
- Infrastructure Improvements: Construction of an ice-skating rink in Manali, expansion of Kullu Airport, and strengthening of road networks in areas like Banjar and Sundernagar.
- Healthcare Enhancements: Upgrading facilities at hospitals such as the Mother and Child Hospital in Kullu and filling vacant doctor posts in Sarkaghat.
- Utility and Service Upgrades: Better water and electricity supply, increased police personnel during tourist seasons, and solutions for traffic management and snow clearance.
Call for Central Government Support
CM Sukhu urged the Central government to restore the RDG and provide special financial assistance, taking into account the state's unique circumstances. He stressed that collective efforts are necessary to convince the Centre of the critical need for this support to sustain Himachal Pradesh's growth and stability.
The meeting was attended by key officials, including Education Minister Rohit Thakur, Public Works Minister Vikramaditya Singh, and Chief Secretary Sanjay Gupta, underscoring the importance of these discussions for the state's future planning.
