Himachal Pradesh Government Confronts Major Fiscal Crisis After Central Grant Withdrawal
The Himachal Pradesh government is poised to address significant financial difficulties stemming from the central government's decision to discontinue the revenue deficit grant (RDG). This critical issue will be a central topic in a state cabinet meeting scheduled for Sunday, following recommendations from the 16th Finance Commission.
Finance Department to Present Detailed Fiscal Analysis
The state's finance department is preparing a comprehensive presentation that will outline the current fiscal situation and the substantial hurdles in managing finances under these new circumstances. Officials project that the discontinuation of the RDG could result in a staggering loss of approximately Rs 10,000 crore for Himachal Pradesh over the next five years, severely straining the state's budget and development plans.
Cabinet to Deliberate on Revenue Generation and Expenditure Control
The council of ministers will deliberate on various measures aimed at generating additional revenue and curbing avoidable expenditure. This discussion is part of a broader agenda to mitigate the impact of the state's increasingly strained finances, which have been exacerbated by the withdrawal of central support.
All-Party Meeting Postponed Amid Political Scheduling Conflicts
Chief Minister Sukhvinder Singh Sukhu had called for an all-party meeting on Sunday to brief legislators on the profound impact of the RDG closure and other fiscal challenges. However, this meeting was postponed after Leader of Opposition Jai Ram Thakur requested a rescheduling. Thakur cited prior commitments in legislative constituencies that prevented him and several other BJP MLAs from attending.
Sukhu confirmed that the all-party meeting will now be held at a later date, emphasizing the government's intent to inform BJP legislators about the potential financial losses and new challenges facing the hill state due to the RDG withdrawal. This move underscores the bipartisan concern over the state's fiscal health.
Finance Department to Hold Press Briefing on Fiscal Condition
In addition to the cabinet discussions, the finance department plans to hold a press briefing on Sunday to present a clear and transparent picture of the state's fiscal condition. This briefing aims to address public concerns and provide detailed insights into the financial strategies being considered.
Himachal Pradesh's Debt Crosses Rs 1.03 Lakh Crore Mark
The urgency for immediate revenue-boosting measures and expenditure control is highlighted by Himachal Pradesh's cumulative debt, which has already surpassed Rs 1.03 lakh crore. This mounting debt burden, combined with the loss of central grants, creates a pressing need for innovative fiscal management and policy interventions to ensure the state's economic stability and continued development.
