Sukhu meets Fin Min, seeks additional financial aid for HP
Shimla, Sept. 9 -- Chief minister Sukhvinder Singh Sukhu met Union finance minister Nirmala Sitharaman in New Delhi on Tuesday. He apprised the Union minister of the current financial position of HP and the financial challenges being faced by the state. He urged the Union government to provide additional financial assistance, keeping in view the state's unique geographical and economic condition.
The CM said that with the discontinuation of the Revenue Deficit Grant (RDG) from the financial year 2026-27, following the recommendations of the 16th Finance Commission, Himachal Pradesh is facing an annual financial gap of around Rs 8,000 crore. He said the continuous reduction in the Revenue Deficit Grant over the past few years had further increased pressure on the state's finances.
He said that Himachal Pradesh, being a hill state, faces difficult geographical conditions, high vulnerability to natural disasters and higher costs of creation and maintenance of infrastructure, making the delivery and operation of public services comparatively more expensive.
Sukhu said that despite limited resources, the state government has been making sustained efforts to improve its financial position through various financial reforms and revenue-generation measures. He emphasized that, in view of the state's geographical conditions and the heavy losses caused by natural disasters in recent years, additional support from the Union Government is essential.
The CM also requested that the state's borrowing limit be enhanced from the existing 3 to 4 percent of the Gross State Domestic Product.
Sitharaman assured the CM that the demands raised by the Himachal government would be considered sympathetically, keeping in view the state's financial requirements and developmental priorities. htc...
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