Shimla, Mar 18 (UNI) The budget discussion for the 2025-26 financial year witnessed sharp exchange of words between Chief Minister Sukhvinder Singh Sukhu and Leader of Opposition Jai Ram Thakur. The primary issue revolved around the significant reduction in the budget outlay for capital works, with both leaders blaming each other for the cuts.
During the debate, Chief Minister Sukhu defended the government’s decision to increase the overall budget allocation by Rs 71 crore compared to previous years. He emphasized that despite this increase, a significant reduction in the Revenue Deficit Grant, expected to fall to Rs 3,257 crore in the next year, had affected the state’s financial capacity.
Sukhu pointed out that the reduction in grants, along with other financial constraints, had impacted the state's ability to increase capital expenditure. He noted that during the previous government’s tenure, they benefited from the 14th and 15th Finance Commissions, which allowed for larger budgets and greater spending capacity for capital projects. Under the 14th Finance Commission (2012-2017), the state received Rs 40,000 crore, and under the 15th Commission (2016-2025), Rs 38,000 crore. However, Sukhu highlighted that the previous government left only Rs 6,200 crore from the 15th Finance Commission.
Sukhu also criticized the former government for misusing GST compensation funds, which were intended for vital financial commitments like paying off loans and the 6th Finance Commission installment. Instead, he argued, the funds were spent on populist schemes like distributing freebies. He further mentioned that the former government had taken advantage of increased borrowing limits during the COVID-19 period, a practice he argued was not sustainable.
On the other hand, Jai Ram Thakur raised concerns over the sharp reduction in capital expenditure, particularly for infrastructure projects like the IPH scheme. He accused the state government of failing to spend on essential development works, including road construction and tourism projects, while claiming credit for central schemes. Thakur argued that the state’s coffers were empty, and there was no mention of central assistance in the budget, which he described as a serious oversight.
Thakur also criticized the Congress for failing to fulfill the promises made to the people during the election. He pointed out that, under the current government, loans had soared to Rs 27,000 crore in just two years, compared to Rs 28,744 crore over five years under his leadership. He claimed the countdown had begun for the Congress government, with many of their promises yet to be realized.
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