The withdrawal of the RDG (revenue deficit grant) by centre to Himachal apart from 16 other states after March 2026 has sent jitters down the spine of the current government as it is already facing a severe resource crunch and is hard pressed to meet it’s expenditures in this cash strapped hill state.

The grant which was 12.7% of the state’s budget will have a crippling impact on the state’s finances if not revoked thanks to financial mismanagement and ostentatious spending by successive governments including the present one.

The government was already finding it hard to meet it’s expenses even though it did not stop it from hiking the salaries of all MLA’S and the bill for the massive hike was passed without a whimper as it benefitted all MLA’S.

Successive governments in himachal have been piling up debt over the decades and the tiny hill state has a burgeoning debt of over one lakh crore for a population of around 75 lakhs.

Their has been no attempt by any government to curb their wasteful expenditure inspite of the financial mess the state has been since more than past 2 decades.

In 2017 when the BJP government took over the State’s debt had almost doubled from the previous 5 years under Congress to almost 47000 crores from the previous 27500 crores.

Not to be left behind the Jai Ram government increased that debt by almost 58% to almost 75 thousand crores when the Sukhu government took over.

The current government has already under it’s 3 year span increased that debt by a whopping 40% or even more to 1,05000 crore and they still have 2 years in office.

At this rate and with the RDG gone it won’t be a surprise if they end up doubling their inherited debt to a mind boggling one and a half lakh crore.

The debt burden of himachal in 2007 was 19,977 crores or almost twenty thousand crores and since then it has crossed one lakh crore and currently stands at one lakh five thousand crores in the beginning of 2026 which is a climb of almost 85000 crores in 18 years with 2026 just setting in.

These figures smack of fiscal and financial imprudence by all governments who have been at the helm. The trend is continuing with alarming pace and the debt to GDSP ratio is more than 40% and will be touching 50% sooner than later.

Their has been no attempt by any government least of all the present one to curb wasteful expenditure be it the appointing of parliamentary secretaries, chairmen, vice chairmen of boards and corporations, with a new fleet of cars following every appointment.

A recent report of a newly appointed chairman buying 4 new Mahindra scorpio’s is the talk of the town and shows the governments callousness and indifference to the current financial emergency.

All ministers have over the years found it inappropriate to move around in cars left behind by their previous incumbents and made it a point to buy new cars whenever they assume office unmindful of the states financial mess.

Instead of focusing on steps and measures to augment the state finances by building up infra to promote tourism which could have been a money spinner for the state given it’s location and landscape governments over the years indulged in petty politics and failed to improve necessary infrastructure around tourist spots.

Being a peaceful state Himachal could have thrived and increased it’s income if tourism had been promoted globally but they failed to create the necessary infrastructure needed be it ropeways, mini flyover or easy access to tourist places.

Khajjiar in Chamba district which is called mini Switzerland because of it’s mesmerizing locale, a lake in the midst of towering deodars and sprawling landscape epitomises the state’s epathy and negligence to this sector as the once scenic lake has been turned into a marshland thanks to the negligence of governments.

The common man has been paying taxes through his nose and has been burdened with debt and woeful amenities be it roads, jobs, basic health for no fault of his or her while the governments have been crying hoarse about lack of funds because of their ineptitude, inefficiency, callousness, spendthriftness and wasteful expenditure.

The state’s financial mess is it’s own creation with public being the sufferer and RDG being the scapegoat.