CM Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi today and urged the Central Government to adopt a liberal approach in extending financial support to Himachal Pradesh. Highlighting the state’s challenging fiscal situation, he requested an increase of 2 percent in the additional borrowing limit for the remaining period of the financial year 2025–26.
The Chief Minister explained that despite consistent efforts to boost revenue, Himachal Pradesh’s finances have come under strain due to reduced revenue deficit grants and repeated natural calamities over the past three years. He noted that under the 15th Finance Commission, the state’s revenue deficit grant has dropped sharply—from ₹10,249 crore in 2020–21 to ₹3,257 crore in 2025–26.
Sukhu further informed that the state has incurred losses of around ₹18,000 crore due to natural disasters during the past three years, which also claimed 1,321 lives and caused widespread damage to infrastructure and resources.
He added that recent rationalisation of GST rates has further weakened the state’s financial position by reducing its tax base. Given these difficult circumstances, the Chief Minister sought enhanced central assistance and flexibility in borrowing limits to help the state manage its fiscal challenges effectively.
Sukhu also apprised the Finance Minister of various measures being implemented by the state government to strengthen its financial health using its limited resources.
Union Finance Minister Nirmala Sitharaman assured that the state’s requests would be considered sympathetically. She also promised additional support under the Special Central Assistance and assured that Himachal Pradesh would be prioritised for approvals, particularly in health sector projects.
Nurturing Creativity – Keekli Charitable Trust, Shimla
