Discontinuation of RDG to cause economic crisis in Himachal: Janartha

Published : Feb 06, 2026, 03:30 AM IST
 Congress MLA Harish Janartha

Synopsis

Congress MLA Harish Janartha slammed the Union Budget as disappointing for Himachal Pradesh. He warned that the Centre's move to discontinue the Revenue Deficit Grant (RDG) would push the state into a deep economic crisis, calling it an injustice.

Congress legislator from Shimla Urban constituency Harish Janartha on Thursday said the Union Budget has been disappointing for Himachal Pradesh. He alleged that the Centre had discriminated against Himachal Pradesh and warned that the decision to discontinue the Revenue Deficit Grant (RDG) could push the state into a deep economic crisis.

RDG Discontinuation a 'Shocking Decision'

Addressing the media in Shimla, Janartha said that under the 15th Finance Commission, RDG was allocated to 17 states, including Himachal Pradesh, taking into account their geographical conditions and limited resources. "The purpose of this grant was to maintain financial balance in states like Himachal. However, ending RDG prematurely under the 16th Finance Commission is a shocking decision," he said.

Janartha noted that Chief Minister Sukhvinder Singh Sukhu had met Union Finance Minister Nirmala Sitharaman and requested that RDG be extended for at least five more years. "Despite this, the grant has been discontinued, which is extremely unfortunate," he added.

He said the RDG funds had previously been used in crucial sectors such as drinking water supply, education, and health, and that discontinuing the grant would cause significant losses to the state.

Rejecting the Opposition's argument that RDG had been withdrawn for other states as well, Janartha said Himachal could not be compared with large or highly productive states. "Himachal has a small population, limited resources and very different geographical challenges," he said.

Allegations of Financial Neglect

The Congress MLA alleged that while Himachal provides various kinds of supplies to North India, it does not receive any special assistance in return. "Disaster relief funds due from the Centre are still pending. At such a time, RDG could have acted as a helping hand, but ending it will only aggravate the economic crisis," he asserted.

Call for Political Unity

Calling for political unity, Janartha urged all parties to set aside party lines in the interest of Himachal Pradesh. "If required, we are even ready to approach the Centre along with the BJP leadership, but injustice to Himachal should not be allowed," he said, urging the Opposition not to present misleading figures.

Impact on Key Economic Sectors

Referring to the horticulture sector, Janartha said horticulture, particularly apple production, has been a major contributor to the state's revenue. "Changes in import duty on apples are encouraging imported produce, which will weaken local growers and have a serious impact on Himachal's economy," he warned.

On the provision of single bonds for municipal corporations in the budget, Janartha said it was only at the proposal stage. "If examined closely, it carries several restrictions, making it difficult to avail funds, and eventually the burden will fall on the common people," he said.

Janartha appealed to employees, youth and the general public to raise their voice against the Centre's decision. "This is a long battle, but it is essential for the future of Himachal Pradesh," he said. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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