Shimla: Himachal Pradesh chief minister Sukhvinder Singh Sukhu met Union finance minister Nirmala Sitharaman in New Delhi on Monday to seek a special financial package to offset the revenue deficit expected in the financial year 2026–27.During the meeting, Sukhu expressed concern over the discontinuation of the revenue deficit grant (RDG), stating that the move would severely impact the financial stability of the hill state. He pointed out that the state’s RDG contribution stood at 12.7%, the second highest in the country after Nagaland. Unlike larger states that may absorb such financial shocks, he argued that Himachal’s hill economy lacks the capacity to withstand the withdrawal of this support.Describing the decision as contrary to the spirit of cooperative federalism, Sukhu cited Article 275(1) of the Constitution, which provides grants to states unable to bridge gaps between revenue receipts and expenditure. He noted that this was the first instance of a Finance Commission overlooking the developmental requirements of small hill states.Sukhu highlighted the state govt’s fiscal discipline, stating that no off-budget borrowing was undertaken in recent years and that approximately Rs 600 crore is raised annually through various cesses. Despite increasing taxes and rationalising subsidies, he said revenue losses due to goods and services tax (GST) persist. He urged the Centre to form a committee to reassess the financial challenges of hill states. Sitharaman assured him that the demands would receive sympathetic consideration. MSID:: 128944628 413 |
