Yog Raj Sharma
The North News
Shimla/ New Delhi, October 29
Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday, urging the central government to adopt a liberal approach towards providing financial assistance, grants and loans to the state. Citing the state’s fragile financial condition, Sukhu requested an increase of two percent in the borrowing limit for the remaining period of the 2025–26 financial year. He said that although revenue collection has improved due to the state government’s efforts, declining revenue deficit grants and the impact of natural disasters over the past three years have severely strained Himachal’s finances.
The Chief Minister noted that during the tenure of the 15th Finance Commission, the state’s revenue deficit grant had fallen sharply — from ₹10,249 crore in 2020–21 to just ₹3,257 crore in 2025–26.
Sukhu added that Himachal has suffered economic losses worth nearly ₹18,000 crore due to recurring natural disasters, resulting in the loss of 1,321 lives and significant damage to public resources and labour capacity.
He also pointed out that the rationalisation of GST rates had reduced the state’s tax base, further worsening its fiscal position. The Chief Minister appealed for special financial support from the Centre to help Himachal recover and rebuild.
Sukhu briefed the Finance Minister on the measures taken by the state government to stabilise finances and improve fiscal discipline. In response, Nirmala Sitharaman assured him that Himachal’s requests would be considered sympathetically. She also indicated the possibility of additional central assistance and approvals for externally-aided projects, particularly in the health sector.
The meeting was attended by Rajya Sabha MP Rajni Patil, Chief Minister’s Principal Advisor Ram Subhag Singh, Principal Secretary (Finance) Devesh Kumar, Principal Resident Commissioner Ajay Kumar Yadav, and senior officials from the Union Finance Ministry.
