Himachal Pradesh Chief Minister Ties MLA Fund Disbursement to Fiscal Recovery
In a significant announcement from Shimla, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu declared on Friday that the release of MLA local area development (LAD) funds and discretionary grants is contingent upon an improvement in the state's precarious financial condition. This statement came as a direct response to mounting pressure from the opposition BJP legislative party, which had recently met with Governor Shiv Pratap Shukla to address the issue.
Financial Constraints and Political Accusations
Sukhu emphasized that the state government is severely constrained by its current fiscal situation, making it impossible to allocate these crucial development funds at present. He pointedly suggested that the financial outlook could brighten considerably if BJP legislators ceased their efforts to approach the central government to block grants specifically earmarked for Himachal Pradesh.
"As soon as the financial situation improves, we will move forward and consider releasing the MLA funds," the Chief Minister stated unequivocally, highlighting the direct correlation between state revenue and local development initiatives.
Redirecting Focus to Central Grant Stalling
The Chief Minister further criticized the BJP's approach, arguing that it would have been far more constructive if the opposition party had instead raised the critical issue of the central government withholding nearly Rs 10,000 crore annually from Himachal Pradesh under the revenue deficit grant (RDG). Sukhu asserted that this substantial financial shortfall has had a devastating impact on the state's overall fiscal health and its ability to fund essential services and projects.
Addressing allegations that the state government failed to adequately present its case before the Centre, Sukhu revealed that he personally met with the Union Finance Minister and the Chairman of the 16th Finance Commission on four separate occasions each. "We worked extremely hard and presented our case thoroughly. Saying that the case was not presented properly is completely wrong," he countered with firm conviction.
Proposal for Joint Action and Upcoming Deliberations
In a surprising move towards collaboration, Sukhu offered that if BJP leaders still believed the state's case was inadequately presented, his government was prepared to jointly approach the central government once more. This is particularly relevant as the recommendations of the 16th Finance Commission concerning the RDG have yet to be formally accepted. However, he cautioned that the final decision does not rest solely with the Finance Minister.
"This issue has to be raised before the Prime Minister. If you take time from the Prime Minister, I am ready to accompany you (BJP)," Sukhu proposed, extending an olive branch while underscoring the need for high-level intervention.
Meanwhile, the pressing issue of the RDG discontinuation is scheduled to be discussed in exhaustive detail during an upcoming cabinet meeting on February 8. Additionally, the Chief Minister has convened an all-party meeting on the same date to deliberate on this matter comprehensively and to seek a broad consensus on the most effective path forward for the state's financial rehabilitation.
