CM Raises Himachal Fiscal Issues with Union FM

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Chief Minister Thakur Sukhvinder Singh Sukhu on Tuesday met Nirmala Sitharaman, Union Finance Minister, in New Delhi and raised key Himachal fiscal issues, seeking enhanced central support to strengthen the state’s financial stability.

During the meeting, the Chief Minister highlighted the growing pressure on the state’s finances and stressed that Himachal fiscal issues require special consideration due to the state’s hill geography, limited revenue base, and rising expenditure on public services.

Himachal Fiscal Issues Raised Before 16th Finance Commission

The Chief Minister apprised the Union Finance Minister about the memorandum and additional memorandum submitted to the 16th Finance Commission, urging that the Revenue Deficit Grant (RDG) be fixed at a minimum of ₹10,000 crore annually. He emphasised the need for a realistic assessment of state revenues and expenditure projections during the Commission’s award period to address long-standing Himachal fiscal issues.

Green Fund Demand Linked to Himachal Fiscal Issues

Raising environmental concerns, the Chief Minister strongly advocated the creation of a separate Green Fund with an annual allocation of ₹50,000 crore for hill states, describing them as the green frontiers and ecological lungs of North India. He also sought a revision in the horizontal devolution formula, demanding increased weightage for forest cover, ecology, and snow-covered cold desert regions, which significantly contribute to national environmental security while intensifying Himachal fiscal issues.

Disaster Vulnerability and Fiscal Stress

Referring to frequent natural disasters, the Chief Minister underlined that Himalayan states cannot be equated with plains and called for a separate Disaster Risk Index (DRI) for hill states. He said the absence of a hill-specific framework has deprived Himachal Pradesh of adequate disaster-related resources, further aggravating Himachal fiscal issues.

The Chief Minister also requested permission for additional borrowing of up to two per cent of GSDP, citing the sharp decline in Revenue Deficit Grants over recent years, which has severely constrained the fiscal space available to the state.

Principal Advisor to the Chief Minister Ram Subhag Singh, Principal Secretary (Finance) Devesh Kumar, Secretary to the Chief Minister Rakesh Kanwar, and senior state government officers accompanied the Chief Minister during the meeting.