Himachal Pradesh Reports Strong Financial Performance with Rs 26,683 Crore Self-Generated Revenue
Chief Minister Sukhvinder Singh Sukhu announced on Saturday that Himachal Pradesh has generated a substantial Rs 26,683 crore from its own resources over the past three years. This achievement underscores the state's dedicated efforts to bolster its financial stability and reduce dependency on external funding.
MLA Priority Meeting Highlights Development and Revenue Gains
The announcement was made during the first session of the MLA priority meeting, held on the second day of discussions for the financial year 2026-27. The meeting involved MLAs from Kullu, Mandi, and Shimla districts, focusing on constituency-wise development priorities to ensure targeted growth across the region.
Key Financial Achievements and Asset Acquisitions
CM Sukhu highlighted several significant financial milestones. Notably, the state secured ownership of the Wildflower Hall Hotel in Shimla district, resulting in a financial benefit of approximately Rs 401 crore. This prestigious property is expected to generate nearly Rs 20 crore annually, providing a steady revenue stream for the state.
Additionally, the royalty share of the Karcham-Wangtoo Hydropower Project has been increased from 12% to 18% due to the current government's initiatives. This enhancement is projected to yield an additional annual income of around Rs 150 crore for Himachal Pradesh, further strengthening its economic position.
Concerns Over Discontinued Revenue Deficit Grant
Sukhu expressed serious concerns regarding the financial support from the central government. Under the 15th Finance Commission, Himachal Pradesh received a revenue deficit grant (RDG) of Rs 37,199 crore, released in a phased and declining manner between 2021–22 and 2025–26. However, the 16th Finance Commission's decision to discontinue the RDG could lead to a potential loss of nearly Rs 50,000 crore for the state.
He described this move as unjust, particularly for a hill state facing challenging geographical conditions. Sukhu urged the Centre to restore the grant and provide special financial assistance to mitigate the adverse impact on Himachal Pradesh's development plans.
Tourism Initiatives and Budgetary Criticisms
On the tourism front, Sukhu noted that initiatives to promote border tourism have commenced at Shipki-La Pass on the India-China border, aiming to boost visitor numbers and local economies. However, he criticized the exclusion of Himachal Pradesh from the proposed Buddhist Circuit in the Union Budget 2026–27, labeling it as discriminatory.
He also pointed out the lack of specific budgetary provisions for tourism development, despite the state's global appeal as a tourist destination. This omission, according to Sukhu, hampers efforts to capitalize on the region's natural beauty and cultural heritage.
Meeting Attendees and Broader Implications
The meeting was attended by key officials, including Education Minister Rohit Thakur, Public Works Minister Vikramaditya Singh, Vice Chairman of the State Planning Commission Bhawani Singh Pathania, and senior officers. Their presence underscores the collaborative approach to addressing financial and developmental challenges in Himachal Pradesh.
Overall, the state's financial achievements reflect a proactive strategy to enhance self-reliance, while the concerns raised highlight ongoing challenges in securing adequate central support for sustainable growth.
