CM Sukhvinder Sukhu Urges Union Finance Minister Nirmala Sitharaman for Financial Support and Reforms for Himachal Pradesh.
Shimla:
In a significant meeting held on Thursday in New Delhi, Chief Minister Thakur Sukhvinder Singh Sukhu called on Union Finance Minister Nirmala Sitharaman to discuss critical financial issues impacting Himachal Pradesh. The Chief Minister presented a series of requests aimed at addressing the state’s pressing economic challenges, particularly the limitations placed on the state for availing external financial assistance.
During the meeting, CM Sukhu highlighted the constraints imposed by the Department of Expenditure on Himachal Pradesh, which have severely affected the state’s financial situation and stalled several important development projects. He urged the Finance Minister to review and restore the previous limits, ensuring that the state can access external assistance without restrictions.
Further, CM Sukhu sought the Finance Minister’s support in facilitating multilateral funding for a reconstruction and rehabilitation proposal under a new window with the World Bank, which would go beyond the current ceiling imposed by the Ministry of Finance.
The Chief Minister also raised concerns regarding the reduction of Revenue Deficit Grants, emphasizing that although the state government has implemented various measures for resource mobilization, they are not sufficient to meet the financial obligations for the upcoming financial year (2025-26). He requested approval for an additional borrowing capacity of 2 percent of the GSDP for the year to bridge the financial gap.
Additionally, CM Sukhu raised the issue of the high cost of infrastructure development in Himachal Pradesh due to the state’s tough topography and challenging weather conditions. He called for additional resources to tackle these unique construction challenges.
Union Minister Nirmala Sitharaman assured the Chief Minister of a sympathetic consideration of the demands presented. Chief Secretary Prabodh Saxena, Principal Advisor to CM Ram Subhag Singh, and Resident Commissioner Meera Mohanty accompanied CM Sukhu during the meeting.
