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Funding Disparity: BJP Tenure vs Present Govt in RDG Allocation

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Shimla: In a scathing statement issued today Chief Minister Thakur Sukhvinder Singh Sukhu accused the previous BJP government of plundering the state coffers and spending lavishly instead of investing in development or essential infrastructure. The Chief Minister questioned the BJP’s defense of the 16th Finance Commission’s observations regarding the discontinuation of the Revenue Deficit Grant (RDG) pointing out that the BJP tenure benefited from a massive Rs. 54296 crore in RDG. This grant which accounted for 25 to 30 percent of the state’s total revenue receipts along with Rs.16000 crore in GST compensation was allegedly utilized for political stabilization and freebies rather than addressing the state’s long-term fiscal health.

The Chief Minister detailed a stark contrast in the financial support received by the two administrations noting that while the BJP received over Rs.54296 crore across five years the current government has been provided only Rs.17563 crore in the last three years, nearly half of the previous allocation.

Detailing, he said that the BJP got Rs. 8449 crore in 2018-19 during the 14th Finance Commission as RDG, Rs. 8271 crore in 2019-20, Rs. 8062 crore in 2020-21 besides Rs. 11431 as interim Grant, Rs. 7834 crore in the year 2021-22 and Rs 10249 crore in 2022-23 by 15th Finance Commission, totaling Rs. 54296 crore.

Whereas the present congress government just got Rs. 8058 crore in the year 2023-24 during the 15th Finance commission, Rs. 6258 crore in 2024-25 and Rs. 3257 crore in 2025-26, totaling Rs. 17563 crore, which is almost less than half of the amount the BJP got in the form of RDG.

Despite the substantial funds available to them, the BJP government failed to disburse employee arrears or announce Dearness Allowance (DA). Furthermore the Chief Minister highlighted that the previous regime did not invest significantly in health infrastructure a sector the current government is now prioritizing with a Rs.3000 crore modernization plan and an additional Rs.1300 crore under JICA Phase-II to upgrade healthcare delivery systems.

The fiscal landscape inherited in December 2022 was described as one defined by a massive accumulation of debt and deferred financial commitments. By the end of the BJP’s term the state’s total outstanding debt had surged to approximately Rs.76185 crore an increase of nearly Rs.28000 crore in just five years. This burden was exacerbated by a Rs.10000 crore liability in revised pay scale arrears and DA which the Chief Minister labeled a ‘last-minute’ political maneuver performed without any budgetary provisions. This ‘opening spree’ of over 900 institutions in the final six months of the BJP tenure created an additional annual unfunded liability of Rs.5000 crore forcing the current government to de-notify many of these units to prevent total economic collapse.

Concluding his remarks Chief Minister Sukhu stated that the BJP’s current “hue and cry” over the state’s fiscal position is hypocritical given their history of vandalizing the state’s treasury. He emphasized that while the present government is successfully introducing advanced medical technologies like robotic surgery and mulls starting bone marrow transplant centers in IGMC.

He said that the BJP leaders were personally invited to understand the fiscal health of the State in the presentation given on Sunday but they remain focused on attending functions rather than giving importance to States fiscal health and the welfare and interests of the people of Himachal Pradesh.

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