Fiscal Stress and Policy Gaps: Jairam Thakur Raises Red Flags on Budget

Shimla, March 23, 2026:

Former Chief Minister and Leader of Opposition Jairam Thakur intensified his attack on the Sukhu government, terming the Himachal Pradesh Budget 2026–27 a “bundle of lies” aimed at misleading the people of the state. Speaking during the विधानसभा discussion and later to the media, he alleged that most announcements lack adequate financial backing and that several schemes announced over the past three years have failed to take off on the ground.

Thakur claimed that key sectors such as social security pensions, education, rural development, agriculture, and roads have witnessed significant budget cuts, questioning how the state can move towards self-reliance under such circumstances. He pointed out that major sector allocations have declined sharply, with a reduction of ₹2,354 crore (21%) compared to 2024–25 and a further cut of ₹3,188 crore (41.77%) projected for the next financial year.

Highlighting employment concerns, Thakur said that while the previous BJP government had increased government jobs—even during the COVID period—by over 12,000, the current government has seen a decline of nearly 15,000 jobs in the past three years. “The government’s own data exposes its claims of ‘vyavastha parivartan’,” he remarked.

On financial dependence, he noted that despite frequent criticism of the Centre, over 53% of the state’s revenue receipts come from central support, including taxes, grants, and centrally sponsored schemes. He added that the Centre has continued to extend additional financial assistance over the years.

Thakur further questioned reductions in allocations for welfare schemes, citing lower provisions for Himcare, electricity subsidy, and agricultural initiatives like fencing schemes. He also raised concerns over salary deferment, stating that such measures can only be justified under a financial emergency as per constitutional provisions.

He alleged discrepancies in the budget figures, particularly in projected revenues from electricity royalty and excise, and accused the government of presenting inflated claims without corresponding financial data.

Concluding his remarks, Thakur said the budget reflects “confusion, contradiction, and lack of vision,” adding that it is more about managing perception than delivering real development.