CM Urges BJP to Raise RDG Issue with PM, Says State to Lose Rs 10,000 Crore Annually.
Shimla:
Chief Minister Sukhvinder Singh Sukhu on Thursday urged BJP leaders to champion the interests of Himachal Pradesh by taking up the issue of the withdrawal of the Revenue Deficit Grant (RDG) with the Prime Minister, instead of targeting him politically.
Interacting with the media after returning to Shimla from New Delhi, the Chief Minister said that the abolition of RDG would deprive the state of nearly Rs 10,000 crore annually between 2026 and 2031, significantly impacting its financial stability. “Instead of targeting me, BJP leaders should approach the Prime Minister for reinstatement of the RDG. I have appealed to them several times to come forward unitedly, but I know they will never do so,” he remarked, expressing doubts over the opposition’s willingness to cooperate on the issue.
Meeting with P. Chidambaram
Sukhu shared details of his meeting with former Union Finance Minister and senior Congress leader P. Chidambaram in New Delhi. He said he apprised him of the state’s viewpoint on the report of the 16th Finance Commission and its likely implications for Himachal Pradesh. The Chief Minister also highlighted the dire fiscal situation inherited from the previous BJP government, including a debt burden of Rs 75,000 crore and outstanding liabilities of Rs 10,000 crore in salary and pension arrears.
Despite these challenges, he said, the present government’s anti-corruption measures and systemic reforms had generated an additional revenue of Rs 3,800 crore over the past three years.
According to the Chief Minister, Chidambaram commended these fiscal efforts and sought further documentation to formally pursue the matter. He emphasized that RDG is a constitutional provision under Article 275(1), intended to balance the revenues and expenditures of states while making recommendations to the Union Government. He also underlined that with RDG being withdrawn for 17 states, the interests of hilly and small states must be safeguarded.
Financial Comparison with BJP Tenure
Sukhu stated that during the BJP government’s tenure, Himachal Pradesh received RDG amounting to Rs 54,296 crore, whereas the present government has received only Rs 17,563 crore in the past three years. Additionally, the previous BJP regime received Rs 16,000 crore as GST compensation and Rs 11,431 crore as an interim grant in 2020-21.
“In five years of the BJP regime, they received nearly Rs 70,000 crore. Had they repaid Rs 40,000 crore of loans, the state would not have fallen into a debt trap. Jai Ram Thakur should explain to the people where this money was spent and who benefited from it,” he said.
Accusing the previous government of misusing RDG funds and promoting wasteful expenditure, the Chief Minister said the present government had adopted austerity measures and curtailed unproductive spending to improve the state’s finances. He assured that no posts would be abolished and that employment opportunities would be created for youth.
Fiscal Prudence and Reforms
Sukhu said that despite receiving minimal grants from the Union Government, the state had cleared pension arrears for pensioners and family pensioners aged 70 years and above. Arrears of gratuity and leave encashment arising from pension revisions for Class-IV employees who retired between January 1, 2016 and December 31, 2021 have also been disbursed.
“This is clear evidence of our fiscal prudence,” he said.
He added that the government has rationalized IAS, IPS and IFS cadres to strengthen the economy, reducing IFS posts from 110 to 86. Officer-level positions have been pruned, while lower-level posts have been increased to ensure administrative efficiency.
The state has also merged certain colleges and schools to curb expenditure, he said, adding that tough economic decisions were initiated from the very first day the government assumed office.
Ecological Contribution and ‘Vyavastha Parivartan’
Highlighting the state’s ecological contribution, the Chief Minister said that Himachal Pradesh adds nearly Rs 90,000 crore in ecological value to the national economy, as cited in a study by the Indian Institute of Forest Management.
“We have a legitimate right over the resources of our state and we will fight for them,” he asserted, reiterating his commitment to securing the state’s rightful share through his government’s vision of “Vyavastha Parivartan.”
