Chief Minister Thakur Sukhvinder Singh Sukhu called on Union Finance Minister Nirmala Sitharaman today in New Delhi to discuss critical fiscal issues facing Himachal Pradesh and seek support from the Central Government to strengthen the State’s financial health.
During the meeting, CM Sukhu highlighted the memorandum and additional memorandum submitted to the 16th Finance Commission, urging that the Revenue Deficit Grant (RDG) be maintained at a minimum of ₹10,000 crore annually. He emphasized the need for a realistic assessment of State revenues and expenditure projections during the 16th Finance Commission period.
The Chief Minister proposed the creation of a separate “Green Fund” with an annual allocation of ₹50,000 crore for hill states, recognizing their role as the ecological frontiers and lungs of North India. He also suggested revising the formula for horizontal devolution to give greater weight to forest and ecological criteria, including snow-covered and cold desert areas along with dense and moderate forests.
Highlighting the limitations of the current Disaster Risk Index (DRI), CM Sukhu urged the Centre to develop a separate DRI for hill states, noting that Himalayan regions face unique disaster risks and are currently under-resourced for disaster relief.
Finally, the Chief Minister requested support for additional borrowing of 2% of GSDP, citing that the steep reduction in RDG over recent years has constrained the State’s fiscal space.
