Budget 2026: Himachal's Hopes For Green Fund Dashed, Punjab CM Mann Slams Centre

Non-BJP ruled states allege raw deal in Union Budget, slam lack of crucial allocations.

himachal pradesh budget
Union Finance Minister Nirmala Sitharaman announced the construction of mountain trails in Himachal Pradesh to promote hiking and adventure tourism, a move expected to strengthen tourism, one of the state’s key growth drivers and a major source of employment. Photo: Shutterstock
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Summary of this article
  • Union Finance Minister Nirmala Sitharaman announced the construction of mountain trails in Himachal Pradesh

  • The state, repeatedly hit by natural disaster, has been pressing the centre for creating a Rs 50,000 crore Green Fund’

  • Chief Minister Bhagwant Mann says Punjab has once again been treated like a stepchild

Cash-strapped Himachal Pradesh, hoping to tide over its fiscal crisis with financial support, failed to see a revival of its expectations, even as measures such as the proposed mountain trails and the expansion of tourism-related activities have been announced.

Union Finance Minister Nirmala Sitharaman announced the construction of mountain trails in Himachal Pradesh to promote hiking and adventure tourism, a move expected to strengthen tourism, one of the state’s key growth drivers and a major source of employment.

Former Chief Minister Prem Kumar Dhumal, hailing the budget, said, “Himachal Pradesh, the hill state, can see a major scope in the development of tourism, medical tourism, bio-pharma, and emerging technologies. This will help in creating job opportunities.”

Another sector, which has been given focus, is ecotourism and heritage initiatives. States like Himachal Pradesh, Uttarakhand, and Jammu & Kashmir will get a big benefit

Nevertheless, the union budget has belied the state’s hopes of creating a dedicated “Green Fund” to sustain ecological conservation in the fragile hill state and protect its vast green cover.

The state, repeatedly hit by natural disasters and environmental issues, has been pressing the centre for creating a Rs 50,000 crore ‘Green Fund’ to help the hill states—known as the green frontiers of the nation. The state does not have any substantial funding for stepping up relief and rehabilitation works, apart from meeting the gap in the revenue deficit grant.

Himachal Pradesh Deputy Chief Minister Mukesh Agnihotri said the budget presented in the Parliament on Sunday has brought big disappointment to the state. "The abolition of the Revenue Deficit Grant is a big betrayal of the hill states. The move will deprive Himachal Pradesh of Rs 50,000 cr. This is the biggest blow to the resource-starved state," he said, asking the union finance minister to review this decision in the context of the federal structure of India.

The union finance minister's proposal on ecologically sustainable mountain trains and hiking trails in key hill regions is a good move, said BJP MLA Randhir Sharma.

Punjab Chief Minister Bhagwant Mann, soon after the presentation of the 2026-27 budget, launched a sharp attack on the Central Government, terming the budget as anti-Punjab and disappointing for the state.

He said the budget has completely ignored Punjab’s critical needs, once again pushing the state into despair.

The Chief Minister pointed out that there is no mention of Minimum Support Price (MSP) in the budget, despite it being a long-pending and vital demand of farmers. He further said that the budget fails to offer any concrete schemes for job creation for youth or for boosting industrial growth, leaving employment concerns unaddressed.

CM Mann said that at a time when common people are already reeling under inflation, the Centre has provided no relief through tax reforms, effectively adding to the hardships of citizens.

Alleging discrimination, the Chief Minister said that Punjab has once again been treated like a stepchild in the Union Budget. “No concrete steps have been taken to strengthen Punjab’s economy,” he remarked.

However, expressing confidence in the resilience of the people, CM Mann said, “The people of Punjab are hardworking and full of spirit. Even if the Centre does not support us, we will collectively put Punjab back on its feet and lead the state towards progress.”

Earlier, the Punjab government had sent a wish list to the centre asking for a special package to meet the challenge of cross-border threats, including drone-based smuggling and narcotics trafficking. The government had sought a special central assistance of Rs 1,000 crore for police modernisation, besides help in the wake of recent flood devastations.

Unprecedented monsoon floods had wreaked havoc. The floods were declared a calamity of severe nature by the Ministry of Home Affairs, which affected over 2,300 villages and nearly 20,000 families. The total damage has been pegged at Rs 12,905 crore, Cheema’s memorandum states.

CPM leader Sanjay Chauhan said, "The ninth Union Budget presented by the Finance Minister in Parliament is a stark testimony to the uncritical commitment of the Modi Government to promoting the narrow interests of a few big business houses and the wealthy, at the cost of the working people and socially oppressed sections of society, as well as larger national economic interests."

Ironically, hours after the presentation of the budget by Union Finance Minister Nirmala Sitharaman, Prime Minister Narendra Modi headed for Punjab to attend a function related to Guru Rabidass's birth anniversary and visit Dera Sachkhand at Ballan village near Jalandhar. Dera has a large following among Dalit voters, who are expected to play a key role in the 2027 Punjab elections.

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