Facing financial stress and the looming discontinuation of the Revenue Deficit Grant (RDG), Chief Minister Sukhvinder Singh Sukhu today presented Rs 54,928-crore Budget for 2026-27, marking a first-ever Rs 3,586 crore reduction in its size compared to last year. He also announced deferment of up to 30 per cent in the salaries of the CM, ministers, MLAs and senior officers for six months.The four-hour Budget speech by Sukhu, who also holds the Finance portfolio, saw an enraged Opposition marching to the well of the House to protest his accusations of being “anti-Himachal” for not supporting the continuation of RDG before the Centre. It was for the first time that a Budget speech by a Chief Minister was marred by sloganeering, disruptions and adjournment of the House.Sukhu, while announcing around 10 new schemes amid a severe financial crunch, focused on strengthening the rural farm economy with measures for the welfare of the poorest one lakh families, 40,000 fishermen, farmers, fruit growers, milk producers, dairy farmers and shepherds. He also announced a hike in MSP of milk, wheat, maize, barley and turmeric, along with introducing MSP for ginger and wool.“Himachal is burdened under an escalating debt trap, which has crossed Rs 1 lakh crore. The discontinuation of an annual Rs 8,000 crore RDG by the Centre is injustice to Himachal as it cannot be compared with states like Karnataka or Assam, considering our difficult topography, limited resource generation avenues and high cost of development,” said Sukhu in his speech, the lengthiest by any CM till date.A major highlight of the Budget was fiscal prudence through deferment of salaries — 50 per cent for the CM, 30 per cent for ministers, 20 per cent for MLAs, 30 per cent for senior IAS, IPS and IFS officers, and 20 per cent for middle-rung bureaucracy for six months. He also urged the High Court to voluntarily consider a 30 per cent cut in salaries of its judges and 20 per cent for the district judiciary in view of the state’s poor fiscal health.The total revenue receipts for 2026-27 are estimated at Rs 40,361 crore, while revenue expenditure is projected at Rs 46,938 crore, leaving a fiscal deficit of Rs 9,698 crore, which is 3.49 per cent of the state’s Gross Domestic Product (GDP).With committed liabilities such as salaries, pensions, interest payments, debt repayment and grants for autonomous bodies accounting for Rs 80 out of every Rs 100 spent, only Rs 20 remains for development works, a grim reflection of the state’s deteriorating fiscal health.The CM also announced the setting up of three cities — Kangra Valley Township, Him Panchkula and Him Baddi — over 10,000 bighas, along with plans to enhance forest cover to 32 per cent.