Himachal CM Presents Fiscal Demands to Union Finance Minister in Delhi
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu held a crucial meeting with Union Finance Minister Nirmala Sitharaman in New Delhi on Thursday. The discussion focused on the pressing financial issues confronting the hill state.
Key Fiscal Requests and Revenue Deficit Concerns
Sukhu detailed several significant fiscal challenges during the meeting. He specifically requested central government support to bolster the state's financial health. The Chief Minister highlighted matters concerning revenue deficits, disaster management, and ecological responsibilities.
He informed Sitharaman about memoranda submitted to the 16th Finance Commission. Sukhu strongly urged that the revenue deficit grant be set at a minimum of Rs 10,000 crore every year. He emphasized the necessity for a realistic and balanced assessment of state revenues and expenditure projections for the commission's award period.
Proposal for Additional Borrowing and a New Green Fund
Citing reduced revenue deficit grants in recent years, the Chief Minister requested permission for additional borrowing. He asked for up to 2 percent of the Gross State Domestic Product to ease fiscal constraints.
Sukhu also advocated for the establishment of a separate 'Green Fund'. He proposed an annual allocation of Rs 50,000 crore specifically for hill states. The Chief Minister underlined that Himalayan states act as the green frontiers and lungs of North India, providing essential ecological services.
Revisions in Devolution Formula and Disaster Risk Index
The meeting included proposals for revising the horizontal devolution formula. Sukhu sought increased weightage for forest cover and other ecological parameters. He suggested including snow-covered and cold desert areas above the tree line alongside dense and moderately dense forests due to their ecological interdependence.
Sukhu urged the reframing of the disaster risk index. He stated that Himalayan regions face unique vulnerabilities which cannot be equated with other parts of the country. The Chief Minister requested a separate disaster risk index and dedicated disaster allocation for hill states.
