In Shimla, Chief Minister Sukhvinder Singh Sukhu announced a bold counter to the Modi government’s Union Budget 2026-27 decision axing Himachal Pradesh’s Revenue Deficit Grant (RDG)—slashing ₹40,000 crore and hitting other hill states hard.
Tax on Hydro Projects
To offset the void, Sukhu plans taxes on all hydro-power projects’ land in Himachal, with cabinet approval set for February 8 meeting; he noted RDG delivered ₹48,000 crore from 2019-2025, a constitutional aid since 1952 whose abrupt end was unimaginable.
Bipartisan Push
Sukhu called Congress legislative party and BJP MLAs for a joint meeting to brief all on the fiscal crisis, stressing politics aside—united action needed. He targeted GST’s bias favoring big states over hills like Himachal, challenging MP Anurag Thakur to declare his RDG stance. This move aims to bolster state revenues amid mounting challenges.
