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Himachal CM's Urgent Plea: Why State Seeks Financial Lifeline Amid Crisis

Himachal Pradesh Chief Minister Sukhvinder Sukhu met with Union Finance Minister Nirmala Sitharaman to discuss the state's financial challenges. He highlighted how revenue deficit grants have dramatically decreased over recent years while natural disasters have caused massive losses. The CM specifically requested increased borrowing limits and liberal financial assistance to address these pressing issues. Sitharaman responded positively, promising sympathetic consideration and potential additional support for health projects.

Key Points: Himachal CM Sukhu Meets Nirmala Sitharaman for Financial Aid

  • Revenue deficit grants dropped from Rs 10,249 crore to Rs 3,257 crore
  • Natural disasters caused Rs 18,000 crore loss and 1,321 deaths
  • GST rate rationalisation reduced state's tax base significantly
  • State seeks 2% additional borrowing limit for current fiscal year
2 min read

Himachal CM calls on Nirmala Sitharaman, seeks liberal grants

Himachal CM Sukhvinder Sukhu meets Finance Minister Nirmala Sitharaman, seeking increased grants amid revenue deficit and natural disaster losses.

"The state's financial health has been severely impacted due to regular reductions in revenue deficit grants - CM Sukhvinder Sukhu"

New Delhi, Oct 29

Himachal Pradesh Chief Minister Sukhvinder Sukhu on Wednesday met Union Finance Minister Nirmala Sitharaman here and requested her to adopt a liberal approach towards providing financial assistance and grants to the state.

Considering the current financial situation of the state, the Chief Minister urged an increase in the additional borrowing limit by 2 per cent for the remaining period of this fiscal. He highlighted that despite the state government's efforts to increase revenue, the state's financial health has been severely impacted due to regular reductions in revenue deficit grants and losses incurred due to natural disasters over the past three years.

Stressing the need for financial support, CM Sukhu pointed out that the state's revenue deficit grant has decreased significantly from Rs 10,249 crore in 2020–21 to Rs 3,257 crore in 2025–26 under the 15th Finance Commission's period. He also mentioned the loss of around Rs 18,000 crore due to natural disasters during the past three years, which resulted in the death of 1,321 people and extensive damage to resources.

The Chief Minister said the recent rationalisation of Goods and Services Tax (GST) rates has adversely affected the state's financial position because of the reduction in the tax base. In view of the difficult circumstances the state is facing, he reiterated that adequate and liberal assistance should be provided.

CM Sukhu also apprised the Union Finance Minister of the measures being taken by the state government to improve its financial situation through its limited resources. The Union Finance Minister assured the Chief Minister that the state’s demands would be considered sympathetically and promised additional assistance under Special Central Assistance. She also said the state would be considered for additional approvals, especially for health-sector projects.

Rajya Sabha MP and state Congress in-charge Rajni Patil were among those present at the meeting.

- IANS

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Reader Comments

S
Sarah B
The reduction from ₹10,249 crore to ₹3,257 crore in revenue deficit grants is alarming. How can any state manage with such drastic cuts? Hope FM Sitharaman keeps her promise of sympathetic consideration.
P
Priya S
While I support state assistance, I wish our state government would also focus more on improving tax collection efficiency. We can't always depend on Delhi for bailouts. Need better financial management at state level too.
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Arjun K
The GST rationalization has really hurt hill states like ours. Tourism is our main revenue source and with reduced tax base, it's becoming difficult to maintain infrastructure. Centre must understand our geographical constraints.
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Michael C
Good to see constructive dialogue between state and centre. The health sector focus is particularly important - our hospitals in remote areas need urgent upgrades. Hope this translates into actual funds soon.
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Nisha Z
1,321 lives lost and ₹18,000 crore damage from natural disasters - these numbers are heartbreaking 💔. Himachal needs immediate financial support for rehabilitation and disaster preparedness. Jai Himachal!

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