Uttarakhand Urges for Enhanced Financial Support Amid Development Challenges

Uttarakhand Chief Minister Pushkar Singh Dhami on Monday articulated the state's financial challenges and developmental needs in a critical meeting with Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, and other key members at the Secretariat. According to an official statement, CM Dhami underscored the necessity of adequate compensation for the 'Eco Service Cost' associated with maintaining the state's rich forest cover. He called for a 20 percent increase in the weight assigned to forest cover under 'Tax-Transfer'. Additionally, Dhami emphasized the need for special grants to manage and conserve forest areas effectively.

Welcoming the Finance Commission's delegation to Uttarakhand during the state's silver jubilee year, Dhami highlighted the state's remarkable progress over the past 25 years. He acknowledged the reliance on external loans for infrastructure development post-state establishment, emphasizing significant achievements across development parameters. With a budget surpassing one lakh crore rupees, Uttarakhand leads the 2023-24 SDG Index by NITI Aayog, with a reduced unemployment rate of 4.4 percent and a noteworthy 11.33 percent increase in per capita income, outpacing the national average.

CM Dhami projected the state's unique challenges due to extensive forest coverage, impacting both conservation expenses and potential development within forest areas. Emphasizing the ongoing fiscal struggles post-2010 'Industrial Concessionary Package' termination, he critiqued the private sector's limited involvement in education and health sectors due to Uttarakhand's challenging geography. He advocated for continuous financial support addressing natural disasters, sought special budget allocations for education and health, and detailed innovative efforts like the 'Bhagirath App' aimed at water conservation, highlighting the need for special infrastructure assistance to accommodate the state's floating population at pilgrim sites.

(With inputs from agencies.)