Overview
- The Assembly on February 18 passed a resolution urging the Centre to restore the Revenue Deficit Grant that the 16th Finance Commission recommended discontinuing from 2026–27 for 17 states.
- Chief Minister Sukhvinder Singh Sukhu says he will lead his cabinet to Delhi to meet Mallikarjun Kharge and Rahul Gandhi and has sought a meeting with the Prime Minister ahead of the March 17 Union Budget.
- Sukhu argues the grant is a constitutional entitlement under Articles 275 and 280, warning that its loss could force a 15% cut to the state budget and noting an annual income of Rs 42,000 crore against Rs 48,000 crore in expenditure.
- The BJP opposed the resolution and accused the Congress government of financial mismanagement, with Leader of Opposition Jai Ram Thakur saying the state must manage finances effectively and that failure to present its case may have contributed to the cutoff.
- Proceedings were repeatedly disrupted during the debate and the budget session was deferred to March 18 as both sides exchanged conflicting figures over past grants, borrowing and repayments.