CM Sukhu Meets Union Finance Minister, Seeks Support for Strengthening Himachal Pradesh’s Finances.
New Delhi:
Chief Minister Sukhvinder Singh Sukhu called on Union Finance Minister Nirmala Sitharaman in New Delhi today to discuss key fiscal issues concerning Himachal Pradesh and seek the Centre’s support for strengthening the state’s financial position.
During the meeting, CM Sukhu apprised the Union Minister about the memorandum and additional memorandum submitted to the 16th Finance Commission, emphasizing the need for a realistic and adequate assessment of Revenue Deficit Grants (RDG). He urged that the annual Revenue Deficit Grant for the state be maintained at a minimum of Rs. 10,000 crore, stressing that accurate revenue and expenditure projections are essential for sustainable fiscal planning.
Highlighting the ecological significance of hill states, the Chief Minister proposed the creation of a separate ‘Green Fund’ with an annual allocation of Rs. 50,000 crore. He described hill states as the “Green Frontiers and Lungs of North India” and emphasized that the ecological services they provide must be adequately recognized. Sukhu also recommended a revised formula for horizontal devolution, giving increased weightage to forest and ecology criteria, and urged inclusion of snow-covered and cold desert areas above tree lines along with very dense and moderate forest areas, citing their symbiotic ecological importance.
CM Sukhu further called for a reframing of the Disaster Risk Index (DRI) developed by the 15th Finance Commission. He highlighted that Himalayan regions face unique challenges and cannot be equated with other parts of the country. He stressed that despite frequent natural disasters, Himachal Pradesh has been deprived of sufficient resources for disaster relief, and requested a separate DRI for hill states with dedicated allocations.
Addressing the state’s fiscal constraints, the Chief Minister sought Centre’s approval for additional borrowing of 2% of GSDP, citing a steep reduction in RDG over recent years, which has severely limited the state’s fiscal space.
The meeting was attended by Principal Advisor to the CM Ram Subhag Singh, Principal Secretary Finance Devesh Kumar, Secretary to the CM Rakesh Kanwar, along with senior officials of the state government.
This meeting reflects the state government’s continued efforts to secure financial support, ecological funding, and disaster preparedness resources to ensure sustainable development and fiscal stability for Himachal Pradesh.
