CM Sukhu Meets Union Finance Minister Nirmala Sitharaman; Seeks 2% Increase in Additional Borrowing Limit for Himachal Pradesh.
New Delhi:
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu called on Union Finance Minister Nirmala Sitharaman in New Delhi today and urged the Centre to adopt a liberal approach in extending financial support and grants to the state. The Chief Minister sought an increase of 2 percent in the additional borrowing limit for the remaining period of the financial year 2025–26, citing the state’s strained fiscal position and heavy losses caused by recurrent natural disasters.
During the meeting, Chief Minister Sukhu highlighted that despite the state government’s consistent efforts to boost revenue generation, Himachal Pradesh’s financial health has been severely affected by reductions in revenue deficit grants and frequent natural calamities over the past three years.
He pointed out that the revenue deficit grant to the state had drastically declined from Rs. 10,249 crore in 2020–21 to Rs. 3,257 crore in 2025–26 under the 15th Finance Commission’s award period. The Chief Minister further informed that the state has incurred losses worth approximately Rs. 18,000 crore due to natural disasters over the past three years, which also led to the tragic loss of 1,321 lives and widespread damage to public and private property.
Emphasizing the urgent need for financial assistance, Sukhu said, “The financial strain has been aggravated by the reduction in the tax base following the recent rationalisation of Goods and Services Tax (GST) rates. In these challenging circumstances, Himachal Pradesh requires adequate and liberal central assistance to sustain development and meet public welfare commitments.”
The Chief Minister also apprised the Union Finance Minister of several measures undertaken by the state government to strengthen its financial position through efficient resource management and fiscal discipline, despite limited resources.
Union Finance Minister Nirmala Sitharaman assured Chief Minister Sukhu that the state’s demands would be examined sympathetically. She further stated that additional support under Special Central Assistance (SCA) would be extended to Himachal Pradesh, and the state’s proposals—particularly those related to health sector projects—would be considered for priority approvals.
The meeting was attended by Rajya Sabha MP and Himachal Congress In-charge Rajni Patil, Principal Advisor to the Chief Minister Ram Subhag Singh, Principal Secretary Devesh Kumar, Principal Resident Commissioner Ajay Kumar, and senior officers from the Union Finance Ministry.
