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Himachal CM Sukhu Seeks ₹50,000 Cr Green Fund & Fiscal Aid from Centre

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in Delhi to discuss the state's fiscal challenges. He advocated for a massive ₹50,000 crore annual 'Green Fund' specifically for hill states, recognizing their ecological role. The CM pushed for a revised Revenue Deficit Grant formula and a separate Disaster Risk Index for Himalayan regions, arguing they face unique risks. He also requested permission for additional borrowing to ease the state's constrained fiscal space.

Key Points: Himachal CM Meets FM Sitharaman, Raises Key Fiscal Demands

  • Seeks ₹50,000 crore annual Green Fund for hill states
  • Urges realistic Revenue Deficit Grant assessment
  • Demands separate Disaster Risk Index for Himalayas
  • Requests additional 2% GSDP borrowing for Himachal
2 min read

CM Sukhu meets Union Finance Minister, raises key fiscal issues of Himachal Pradesh

CM Sukhvinder Singh Sukhu meets Union Finance Minister Nirmala Sitharaman, urging a ₹50,000 crore Green Fund for hill states and increased financial support.

"He strongly pleaded for creating a separate 'Green Fund' with an earmarked annual allocation of Rs 50,000 crore for hill states - CM Sukhvinder Singh Sukhu"

Shimla, January 15

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday called on Union Finance Minister Nirmala Sitharaman at New Delhi.

Discussing the fiscal issues of the State, the Chief Minister sought the support of the Centre Government for strengthening the financial condition of Himachal Pradesh.

CM Sukhu apprised the Union Minister about the memorandum and additional memorandum submitted to the 16th Finance Commission. He urged making the Revenue Deficit Grant at a minimum level of ten thousand crore annually. He laid stress on the realistic assessment of the Revenue Deficit Grant of States revenues and expenditure projections during the award period of the 16th Finance Commission.

The Chief Minister strongly pleaded for creating a separate 'Green Fund' with an earmarked annual allocation of Rs 50,000 crore for hill states, which are the 'Green Frontiers and Lungs of North India', keeping in view the ecological services being provided by them.

He was also apprised about the revised formula proposed by the state for horizontal devolution for increasing the weightage for the criteria of Forest and Ecology.

He urged that snow-covered cum cold desert areas above tree lines should be included along with very dense forests and moderately dense forest areas for their symbiotic relationship.

He stressed reframing the Disaster Risk Index developed by the 15th Finance Commission, pleading that the Himalayan regions cannot be equated with other areas of the country. He said that the state was deprived of adequate resources for its disaster relief despite facing heavy natural disasters. He urged for a separate DRI for hill states, considering their unique indicators and demanded a separate allocation for hill states.

The Chief Minister requested the Union Finance Minister to extend support to the State by allowing additional borrowing of two per cent GSDP, as a steep reduction in RDG over the last few years has severely constrained the fiscal space available to the state.

Principal Advisor to CM Ram Subhag Singh, Principal Secretary Finance Devesh Kumar, Secretary to CM Rakesh Kanwar, and senior officers of the state government accompanied the Chief Minister.

- ANI

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Reader Comments

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Priyanka N
The point about the Disaster Risk Index is so valid. How can you compare disasters in the plains with landslides and flash floods in the Himalayas? The loss of life and infrastructure is on a different scale. Separate allocation is a must.
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Aman W
All good points by CM Sukhu. But I hope this isn't just another meeting for the headlines. We need to see actual funds flowing into HP for road repairs and disaster-proofing. Talk is cheap, action is what matters.
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Sarah B
Interesting read. As someone from outside India, it's fascinating to see the federal dynamics at play. The argument for a 'Green Fund' based on ecological services is a progressive one that many mountainous regions globally would support.
K
Karthik V
The financial health of hill states is crucial for national security too, given the border situation. Neglecting their infrastructure due to fund crunch is not an option. Centre should be more generous with the Revenue Deficit Grant.
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Nisha Z
Including cold desert areas in the forest criteria is a smart move. The ecosystem there is fragile and unique. Hope the Finance Commission takes a holistic view. Jai Himachal! 🙏

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