Himachal must receive Revenue Deficit Grant till finances stabilise: Minister Negi

Revenue Minister Jagat Singh Negi
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Yog Raj Sharma

The North News

Shimla, February 23

Senior leaders of the Indian National Congress met in New Delhi to discuss the issue of Revenue Deficit Grant (RDG) for Himachal Pradesh, with a strategy agreed to raise the matter in Parliament.

After returning to Shimla, State Revenue Minister Jagat Singh Negi said the state should continue to receive financial support under Article 275(1) of the Parliament of India framework, which provides for special central assistance to economically weaker states and those with scheduled areas.

He argued that Himachal Pradesh must be given Revenue Deficit Grant until its financial position stabilises. Negi added that recommendations of the Finance Commission and matters such as RDG should have been discussed more thoroughly in Parliament before decisions were taken.

The Minister said the state government was considering “all constitutional options”, from protests to legal remedies, to safeguard its rights. He added that any financial assistance from the Centre would be welcome, but criticised statements by leaders of the Bharatiya Janata Party, suggesting they appeared to run counter to the state’s interests.

On a separate issue, Negi welcomed a recent order by the Supreme Court of India concerning families dependent on tribal and forest land. He said the ruling would provide relief to families cultivating or carrying out horticulture activities on forest land for years. The state government has sent a proposal to the Centre seeking necessary exemptions under the Forest Conservation Act, 1980.

Responding to criticism from the BJP over the imposition of a 1% market tax on fruits and vegetables, Negi said the opposition was obstructing the state’s efforts to generate revenue. He also questioned the Centre’s decision to reduce import duties, asking whether such measures were justified.

He accused the previous “double-engine” BJP government of failing to strengthen the state’s finances, alleging it relied heavily on borrowing and left the burden for the current administration to address.