Himachal presents reduced ₹54,928 crore budget for 2026-27; CM and ministers defer part of salaries
On 21 March 2026 Himachal Pradesh CM Sukhvinder Singh Sukhu presented a ₹54,928 crore budget for 2026-27, smaller than 2025-26's ₹58,514 crore after the Revenue Deficit Grant was discontinued, and announced six-month deferment of part of the salaries of the CM, ministers and MLAs.
Summary
Chief Minister Sukhvinder Singh Sukhu, who holds the finance portfolio, presented a budget of ₹54,928 crore for 2026-27 against ₹58,514 crore in 2025-26. He said the Centre's acceptance of the 16th Finance Commission's recommendations had ended the Revenue Deficit Grant (RDG), causing the state an average loss of ₹8,105 crore a year. To cope, 50% of the CM's salary, 30% of the Deputy CM's and ministers' salaries and 20% of MLAs' salaries will be temporarily deferred for six months, along with 20% of the salaries of chairpersons, vice-chairpersons and political-appointee advisers.
Key facts
- Budget 2026-27
- ₹54,928 crore
- Budget 2025-26
- ₹58,514 crore
- Reason
- Discontinuation of Revenue Deficit Grant after 16th Finance Commission
- Average loss
- ₹8,105 crore a year
- Salary deferment (6 months)
- CM 50%; Deputy CM & ministers 30%; MLAs 20%; chairpersons & advisers 20%
- Presented by
- CM Sukhvinder Singh Sukhu (Finance)
Practice MCQs 3 questions
What is the size of Himachal Pradesh's budget for 2026-27, presented on 21 March 2026?
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Correct answer: A — ₹54,928 crore
The 2026-27 budget is ₹54,928 crore, down from ₹58,514 crore in 2025-26.
Himachal's CM attributed the smaller 2026-27 budget mainly to the discontinuation of:
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Correct answer: B — Revenue Deficit Grant
He said the end of the Revenue Deficit Grant, after the Centre accepted the 16th Finance Commission's recommendations, costs the state about ₹8,105 crore a year on average.
Consider the following about the salary deferment announced in Himachal's 2026-27 budget: 1. 50% of the Chief Minister's salary will be deferred for six months. 2. MLAs' salaries will be deferred by 30%. Which of the above is/are correct?
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Correct answer: A — 1 only
The CM's salary is deferred by 50%; MLAs' by 20% (30% applies to the Deputy CM and ministers), so statement 2 is wrong.