State Confronting Nearly 15 percent Fiscal Gap: Naresh Chauhan

03 March. 2026
Principal Media Advisor to the Chief Minister Naresh Chauhan, , while addressing a press conference on Tuesday stated that the state was presently confronting a fiscal gap of nearly 15 percent following the withdrawal of the Revenue Deficit Grant (RDG). He emphasized that this development directly affects approximately every section of the State, having a population of around 7.5 million. He noted that for a small and predominantly hilly state like Himachal Pradesh, such financial assistance has been indispensable in sustaining developmental initiatives and public welfare programmes. He further clarified that Article 275(1) of the Constitution provides for financial assistance to special category states to enable them to attain self-reliance and fiscal stability.

Referring to the recommendations of the 16th Finance Commission, Chauhan observed that the omission of this crucial provision could result in an annual loss of nearly Rs. 10000 crore to the state, amounting to approximately Rs. 50000 crore over a five-year period. He underlined that it would be practically unfeasible for the State to bridge a 15 percent budgetary shortfall solely through its internal resources. Stressing that the matter transcends political considerations, he described it as an issue concerning the state’s legitimate rights and long-term future.

He further informed that Sukhvinder Singh Sukhu has held detailed discussions with the Union Finance Minister, presenting comprehensive facts, constitutional provisions and reasoned arguments to safeguard the State’s interests. Sh. Chauhan appealed to the opposition parties to rise above partisan politics and unite in the larger interest of Himachal Pradesh.

Addressing concerns regarding the protest during the AI Summit, Sh. Chauhan clarified that the youth were not opposing the summit per-se, rather, they were expressing apprehensions about the potential implications of the proposed US-India trade agreement, particularly for the agriculture and horticulture sectors. He asserted that peaceful protest was a fundamental democratic right and should neither be branded as anti-National nor construed as detrimental to the state’s image.