Sukhvinder Singh Sukhu Terms Union Budget ‘Inequitable’, Flags Concerns Over 16th Finance Commission Report

Chief Minister of Himachal Pradesh, Sukhvinder Singh Sukhu, on Monday termed the recent Union Budget of India as “inequitable” and alleged that it has overlooked the concerns and developmental priorities of hill states like Himachal Pradesh.

Addressing the media, the Chief Minister said the Budget failed to provide adequate financial support for states facing geographical and infrastructural challenges. He argued that special category states such as Himachal Pradesh require tailored fiscal assistance due to difficult terrain, disaster vulnerability, and limited revenue-generating capacity.

Sukhu also raised serious concerns over the recently tabled report of the 16th Finance Commission, stating that certain recommendations may adversely affect the state’s financial position. He cautioned that any changes in tax devolution formulas or grant allocation mechanisms that do not sufficiently account for ecological fragility, sparse population, and higher service delivery costs could strain the state’s finances.

The Chief Minister emphasized that Himachal Pradesh plays a crucial role in environmental conservation and hydropower generation, benefiting the nation as a whole. “Hill states protect forests, water resources, and biodiversity. Their contributions must be adequately recognized in fiscal transfers,” he said.

Sukhu further maintained that the state government would formally submit its concerns and demand a more balanced approach that safeguards the financial interests of smaller and hilly states. He added that the state is closely examining the implications of the Finance Commission’s recommendations on revenue deficit grants, disaster management funding, and centrally sponsored schemes.

The Chief Minister reiterated that equitable federalism requires the Centre to consider regional disparities and ensure fair distribution of resources. He expressed hope that the Union government would address the issues raised by the state to prevent financial hardship and sustain ongoing development projects in Himachal Pradesh.