Speaking on January 31, 2026, Singh stated that the financial difficulties are longstanding, having accumulated over successive administrations.

“The financial situation of the state is not new. It has been a continuous problem of debt. This is a matter of concern for all of us. With the Revenue Deficit Grant (RDG) closed, the state has faced increasing difficulties. Our government is making every effort to overcome this situation as quickly as possible,” he said.

Singh provided further details, explaining, “Look, the state’s financial situation is not a recent development. The debt condition has been building up; it was 45,000 crores, then reached 75,000 crores during their (previous) government, and today it has reached 1 lakh crore. This is a matter of concern for all of us. Additionally, the RDG (Revenue Deficit Grant) has stopped, which has created this situation in the state. Our government is making every effort to emerge from this soon.”

Regarding the deferment of payments to Members of the Legislative Assembly (MLAs) and officials, Singh clarified that this was a necessary fiscal measure rather than a political one. “Steps are being taken to improve the financial situation. However, this is merely a deferment in the state, and it’s not the first time. During the COVID period, even when there was no such financial condition, the salaries and other payments of MLAs and officials were deferred for three to four months. It’s not that they won’t get it; as soon as our situation improves, this is a liability on the government that will have to be paid back. This is not a decision taken from a political perspective. It’s done keeping in view the state’s financial situation and also symbolically to show that we are all united in this financial crisis and will move forward together.”

Earlier the same day, Chief Minister Sukhvinder Singh Sukhu accused the Bharatiya Janata Party (BJP) of refusing to support the state regarding the Revenue Deficit Grant. He asserted that the opposition was engaging in “mere politics” rather than backing the people of Himachal Pradesh.

“The BJP is only doing politics. They did not stand with the people of Himachal Pradesh on the Revenue Deficit Grant, which was the rightful claim of the state,” Sukhu said while speaking to reporters in Shimla.

On the financial situation, the Chief Minister indicated that his government was making persistent efforts to strengthen the state’s economy and had begun to observe positive outcomes. “We are committed to improving the financial health of the state and moving towards self-reliance,” he stated.

Sukhu further accused the BJP of politicising the Panchayat elections issue, reaffirming that elections to Panchayats and urban local bodies would be held before May 31 in accordance with legal and constitutional mandates. “We have already clarified this in the Lower House and also in view of the High Court’s decision,” he added.

The Chief Minister also referenced alleged irregularities in the Himcare scheme, citing an internal audit that revealed a scam amounting to around Rs. 110 crore. “We will bring the truth before the public,” he asserted, emphasising that the government seeks to improve and streamline the scheme rather than discontinue it.

Sukhu clarified that the fiscal discipline measures being implemented should not be interpreted as budget cuts, but rather as initiatives to reinforce the state’s economic structure. “The decisions we are taking today will strengthen the economy of Himachal Pradesh in the long run,” he concluded.