How is Himachal CM Seeking Assistance from Finance Commission?
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Synopsis
In a crucial meeting, Himachal Pradesh's CM Sukhvinder Sukhu engages with the Finance Commission Chairperson, Arvind Panagariya, to address the state's financial challenges. This dialogue highlights the pressing need for support in light of the recent natural disasters and ongoing fiscal prudence efforts. Explore the implications of this meeting for the hill state.
Key Takeaways
- CM Sukhu advocates for financial support to address state challenges.
- The meeting highlights the unique financial needs of hill states.
- Continued Revenue Deficit Grant is crucial for the state's economic stability.
- A separate 'green fund' is proposed for sustainable development.
- Ongoing discussions with central leaders reflect a collaborative approach to state issues.
New Delhi, July 15 (NationPress) The Chief Minister of Himachal Pradesh, Sukhvinder Sukhu, met with Arvind Panagariya, the Chairperson of the 16th Finance Commission, on Tuesday to discuss measures aimed at enhancing the financial stability of the state.
During the meeting, CM Sukhu emphasized that Himachal Pradesh has been committed to fiscal responsibility and ranks among the top-performing states in India based on various indicators, including Sustainable Development Goals.
The Chief Minister appealed for the Commission's assistance in formulating recommendations that take into account the state's current financial challenges.
He pointed out that hill states face significantly higher expenditures compared to others and argued that financial devolution to these regions should be at least double their population share.
Sukhu requested the continuation of the Revenue Deficit Grant (RDG), highlighting the state's geographical disadvantages and limited revenue-generating opportunities.
He noted that the state is currently grappling with a financial crisis due to the steep reduction in RDG by the previous Finance Commission.
Furthermore, he proposed the establishment of a dedicated ‘green fund’ with an annual allocation specifically for hill states.
CM Sukhu mentioned that he had also discussed these concerns with the Prime Minister.
He updated the Chairperson on the state's proposals regarding disaster management, relief from debt, grants for local bodies, and specific state grants.
He urged the Commission to adopt these recommendations.
Chairperson Panagariya promised to extend all possible support to the state.
On the previous day, CM Sukhu met with Union Finance Minister Nirmala Sitharaman to discuss the state's financial situation and advocated for raising Himachal Pradesh's borrowing limit.
He reported on the significant losses caused by recent heavy rainfall and flash floods and sought additional support from the Centre.
In another engagement, CM Sukhu approached Union Civil Aviation Minister Kinjarapu Naidu to request that Delhi-Shimla-Dharamsala and Dharamsala-Shimla-Delhi flights operate on a daily basis instead of just three times a week, as the current schedule is causing inconvenience to tourists.
Additionally, he called for the initiation of night landing facilities at the Dharamsala airport.
Point of View
It is imperative to highlight Himachal Pradesh's unique challenges as a hill state. The financial requests made by CM Sukhu reflect the need for equitable support from the central government, particularly in light of the recent climate-induced crises. The state's fiscal prudence should be rewarded with appropriate assistance from the Finance Commission.
NationPress
21/07/2025
Frequently Asked Questions
What is the purpose of CM Sukhu's meeting with the Finance Commission?
The meeting aims to seek support for improving the financial situation of Himachal Pradesh, particularly in light of recent disasters and the state's unique challenges.
Why does Himachal Pradesh require special financial assistance?
Himachal Pradesh faces higher expenditures due to its geographical location and limited revenue generation capabilities, necessitating special consideration in financial allocations.
What specific requests did CM Sukhu make during the meeting?
CM Sukhu requested the continuation of the Revenue Deficit Grant, the establishment of a green fund, and equitable financial devolution for hill states.
How has the previous Finance Commission affected Himachal Pradesh's finances?
The previous Finance Commission significantly reduced the Revenue Deficit Grant, contributing to the current financial crisis faced by the state.
What was discussed with the Prime Minister?
CM Sukhu discussed the financial needs of the state and the importance of continued support for disaster management and debt relief.
