Himachal CM Advocates for Sustained Revenue Support Amid Disasters

In a fervent appeal to the Finance Commission, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu advocated for the continuation of the Revenue Deficit Grant (RDG) for the financially constrained hill state. He urged maintaining the grant at a minimum annual level of Rs 10,000 crore, highlighting the state's urgent fiscal needs.

The Chief Minister met with Arvind Panagariya, Chairman of the 16th Finance Commission, in New Delhi to discuss the state's fiscal challenges. Sukhu emphasized that Himachal Pradesh has faced severe natural disasters, incurring losses exceeding Rs 15,000 crore. He pointed out that with more than 67% of the state's land being forested, revenue generation opportunities are limited, further compounded by the Supreme Court's environmental mandates.

Sukhu called for a separate 'Green Fund' with an annual allocation of Rs 50,000 crore to support hill states. He also urged a revision of the Disaster Risk Index to adequately reflect region-specific hazards unique to the Himalayan area, insisting on a fair assessment for disaster relief resources. The Chief Minister assured the finance body of the state's commitment to fiscal prudence, seeking empathetic consideration of Himachal's proposals.