Shimla, Mar 21 (PTI) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday presented a Rs 54,928-crore budget for 2026-27 with thrust on rural economy, and blamed the discontinuation of the revenue deficit grant to the state for annual losses of over Rs 8,000 crore.

The grant -- a financial assistance provided by the Centre to fill the gap between the state's revenue and expenses -- was discontinued earlier this month.

Sukhu's Budget speech was disrupted by sloganeering from opposition BJP members after he accused them of "not siding with the state" on the issue of the discontinuation of revenue deficit grant (RDG) that had impacted the state's budget, resulting in a loss of Rs 8,105 crore annually.

"History will never forget them," he said, drawing immediate reaction from BJP members on a specific word used in the speech, which was later expunged.

This is the first time that the size of the budget has been reduced in the state -- to Rs 54,928 crore from Rs 58,514 crore for the ongoing fiscal year, resulting in a cut of Rs 3,586 crore.

As the sloganeering continued, Speaker Kuldeep Singh Pathania adjourned the House till 11.30 am, after which the BJP members left the floor, though Congress MLAs remained seated.

Minutes later, BJP members returned and continued raising slogans while the chief minister carried on with his Budget speech.

Sukhu, who was presenting his fourth Budget, said a comparison of Himachal Pradesh with Uttarakhand and Assam is wrong as Himachal is a hill state with limited resources like water and forest. "Himachal is the lung of North India and should get a 'green bonus', but instead the revenue deficit grant to the state has been discontinued." The state is going through a serious financial situation, and the stopping of RDG has created additional pressure, said the CM and announced that 50 per cent of the Chief Minister's salary, 30 per cent of the Deputy CM's and ministers' salaries, and 20 per cent of the MLAs' salaries will be temporarily deferred for the next six months.

Moreover, 30 per cent of the salaries of the Chief Secretary, additional chief secretaries, principal secretaries, DGP, ADGP, 20 per cent of the salaries of secretaries, head of the departments, IG, SP, chairman, vice chairman of boards, corporations and commissions and officials in similar positions have also been temporarily deferred.

He said conflicts around the world have started impacting the state as well, and LPG prices are increasing due to the ongoing Iran war.

The chief minister, who holds the finance portfolio, announced a provision of Rs 500 crore to complete pending works, adding that a list of 300 incomplete works has been prepared.

The state is expected to register an 8.3 per cent growth for the current fiscal year while its per capita income has increased to Rs 2,83,626, he said.

Subsidies would be targeted to reach the poorest among the poor and identified Below Poverty Line (BPL) and 1-lakh poor families would be given 300 units of free electricity, Rs 1,500 per month would be given to eligible women, fulfilling the poll guarantee, and 27,000 poor families who don't have 'Pacca' houses would be provided the same.

Referring to the tourism sector, the chief minister also announced plans to develop an aerocity in Kangra and a provision of Rs 3,300 crore to acquire land to build an airport in the district.

He said that 50 new eco-tourism sites would be developed and added that the state government would organise fairs and adventure activities in famous hill resorts and other places to increase tourist footfall during weekends.

Forest cover would be increased from 29.5 per cent to 32 per cent in 2026-27, by plantation on 8,000 hectares at Rs 55 crore, and women and youth mandals would be involved in plantations to ensure regular income for them.

The state also hiked milk procurement price by Rs 10, with cow milk to be bought for Rs 61 per litre, and buffalo milk at Rs 71.

Sukhu further announced a minimum support price for fish at Rs 100 per kg, "which will benefit over 6,000 fishermen in the state," and reduced the royalty rate on fish caught from reservoirs from 7.5 per cent to one per cent. A Kisan Aayog and women's tourism fund will also be constituted in the state, he added.

Objecting to the change in the name of MGNREGA, CM Sukhu said that the scheme would continue generating four lakh 'man-days' and the state government would provide Rs 300 crore to Rs 600 crore to meet the additional burden.

According to the revised estimates of the year 2025-26, the total revenue receipts stood at Rs 44,537 crore, and the expenditure was at Rs 54,349 crore, a deficit of Rs 9,812 crore. PTI BPL DRR

Discontinuation of Revenue Deficit Grant increases fiscal pressure; state enacts salary deferments and targeted welfare measures in budget. The budget responds to discontinuation of the Revenue Deficit Grant by reducing overall expenditure and imposing temporary salary deferments for listed officeholders and senior officials for six months, while allocating funds to complete pending works. It shifts subsidies to targeted welfare-free electricity for identified low income households, monthly cash transfers to eligible women, housing for selected poor families-and specifies sectoral measures including increased procurement prices for milk, a minimum support price for fish with reduced royalty, formation of a Kisan Aayog and a Women's Tourism Fund, and allocations for eco tourism and forest plantation.