Yog Raj Sharma
The North News
Shimla, February 17
A political confrontation unfolded in the Himachal Pradesh Legislative Assembly on the second day of its Budget Session, as the Revenue Deficit Grant (RDG) became the focal point of a sharp exchange between leaders of the Congress and the BJP. Deputy Chief Minister Mukesh Agnihotri arrived in the House carrying a copy of the Constitution, asserting that RDG was Himachal Pradesh’s constitutional right. Referring to Article 275, he said the grant was envisioned by the framers of the Constitution to support hill and special category states. “RDG is not merely a financial issue; it is a question of Himachal’s identity and rights,” he said.
Agnihotri argued that at the time of the state’s formation, it was clear that the Centre would extend financial assistance to the mountainous state. He said RDG is linked to the Consolidated Fund of India and accused successive central policies of weakening smaller states. Highlighting disparities under the GST regime, he claimed that larger states benefited more, while Himachal faced financial strain after GST compensation was withdrawn and RDG support came under question.
Citing figures, he said Himachal’s dependence on RDG stands at around 13%, compared with roughly 1% in states such as Karnataka, while Nagaland’s reliance is higher at 17%. He criticised statements suggesting the issue was being politicised ahead of elections.
Leader of the Opposition Jai Ram Thakur rejected the allegations, accusing the government of turning RDG into a political battle. He said the state government had failed to clearly present its position and was instead passing a resolution for political gain.
Mr Thakur added that the Bharatiya Janata Party was raising the matter with the Centre independently and described claims that he was blocking funds in Delhi as “baseless”. He challenged the Deputy Chief Minister to present evidence, warning that such allegations could amount to a breach of privilege.
The exchange underscored deep divisions over the future of RDG, a grant seen as critical to the finances of the hill state, with both sides signalling the debate is far from over.
