Chief Minister Thakur Sukhvinder Singh Sukhu has asserted that his government’s sustained and determined efforts to revive Himachal Pradesh’s fragile economy are now clearly yielding results, with the state generating ₹26,683 crore from its own resources over the past three years. Chairing the MLA Priority Meeting for Kullu, Mandi and Shimla districts for the financial year 2026–27, the Chief Minister presented a detailed economic and political overview, underlining both achievements and emerging challenges faced by the hill state.
CM Sukhu said that at a time when Himachal Pradesh continues to grapple with difficult geography, disaster-related losses and fiscal constraints, the present government has focused on strengthening internal revenue mechanisms instead of relying solely on central assistance. He pointed out that the acquisition of ownership rights of the iconic Wildflower Hall Hotel alone brought a financial gain of around ₹401 crore to the state exchequer and is expected to generate nearly ₹20 crore annually in future revenue. This, he said, reflects the government’s strategy of reclaiming valuable public assets and converting them into long-term revenue sources.
Highlighting another major financial breakthrough, the Chief Minister said that the royalty share of the Karcham-Wangtoo Hydropower Project has been successfully increased from 12 percent to 18 percent due to persistent efforts of the state government. This single decision will result in an additional annual income of nearly ₹150 crore, significantly strengthening Himachal’s financial position. CM Sukhu described hydropower as the backbone of the state’s economy and said that the government is committed to ensuring that Himachal receives its rightful share from projects operating on its land and resources.
Referring to central transfers, the Chief Minister explained that under the 15th Finance Commission, Himachal Pradesh received ₹37,199 crore as Revenue Deficit Grant, released in a tapering manner over five years. However, he expressed serious concern over the decision of the 16th Finance Commission to discontinue the RDG altogether, warning that this would result in a cumulative loss of nearly ₹50,000 crore for the state. CM Sukhu termed this move unjust for a hill state with unique geographical and infrastructural challenges and cautioned that it would adversely affect development works, welfare schemes, and even routine obligations such as salaries and pensions. He strongly urged the Central Government to restore the RDG and provide special financial assistance, keeping in view Himachal Pradesh’s special needs.
Adding a political dimension, the Chief Minister also flagged issues of regional neglect. He said that while the Union Budget 2026–27 announced a Buddhist Circuit for the North-Eastern states, Himachal Pradesh—one of India’s most significant centres of Buddhist heritage—was completely excluded. He described this as discriminatory and reflective of step-motherly treatment. CM Sukhu further pointed out that despite being a globally renowned tourism destination, Himachal Pradesh has not been given any specific budgetary support for tourism development. He said that the state government has therefore taken its own initiatives, including promoting border tourism and allied activities at the strategically important Shipki-La Pass on the India-China border.
During the meeting, MLAs from Kullu, Mandi and Shimla districts raised constituency-specific development demands, many of which were directly linked to infrastructure, healthcare, tourism and disaster resilience. Several legislators echoed the Chief Minister’s concern over the discontinuation of RDG and called for collective political efforts to press the Centre to reconsider its decision. Demands ranged from airport expansion in Kullu, strengthening of road networks, health infrastructure upgrades, drinking water and power supply improvements, to tourism-related projects such as ice-skating rinks and water sports facilities.
CM Sukhu assured the MLAs that development priorities would be addressed in a balanced and transparent manner, despite fiscal pressures. He reiterated that his government’s economic policy is rooted in fiscal discipline, revival of public assets, fair share of royalties, and people-centric development. The Chief Minister said that while challenges remain, the financial indicators over the past three years clearly show that Himachal Pradesh is steadily moving towards economic stability through its own efforts rather than dependency.
Senior ministers, planning commission officials and top bureaucrats present at the meeting noted that the Chief Minister’s economic roadmap combines political assertiveness with pragmatic financial management. As Himachal Pradesh prepares for the next financial year, CM Sukhu’s emphasis on revenue generation, federal fairness and regional equity is set to remain central to the state’s political and economic discourse.
