The North News
NEW Delhi, January 15
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday met Union Finance Minister Nirmala Sitharaman, seeking greater central support to shore up the state’s finances and address what he described as the unique fiscal and ecological challenges of hill regions.
During the meeting in the national capital, Sukhu flagged concerns over the state’s revenue position and urged the Centre to ensure stronger financial backing. He referred to the memorandum and additional submissions made by Himachal Pradesh to the 16th Finance Commission, calling for an annual revenue deficit grant of at least ₹10,000 crore.
The chief minister argued that revenue and expenditure projections for states needed a more realistic assessment during the Finance Commission’s award period. He also proposed the creation of a separate “Green Fund” with an annual allocation of ₹50,000 crore for hill states, citing their role as the “green frontiers” and ecological lungs of north India.
Sukhu said the state had suggested changes to the formula for horizontal devolution, including higher weightage for forest and ecology-related criteria. He added that snow-covered and cold desert areas above the tree line should also be recognised alongside dense and moderately dense forests, given their ecological interdependence.
Raising the issue of disaster vulnerability, the chief minister sought a reworking of the Disaster Risk Index framed by the 15th Finance Commission. He said Himalayan states could not be assessed on the same parameters as plains, noting that Himachal Pradesh had faced repeated natural disasters but lacked adequate resources for relief and rehabilitation. He pressed for a separate disaster risk framework and earmarked allocations for hill states.
The chief minister also requested permission for additional borrowing of up to two percent of the state’s gross domestic product, arguing that sharp reductions in revenue deficit grants in recent years had squeezed Himachal’s fiscal space.
Senior state officials, including the chief minister’s principal advisor Ram Subhag Singh, principal secretary (finance) Devesh Kumar, secretary to the chief minister Rakesh Kanwar and other officials, accompanied Sukhu at the meeting.
