Himachal Pradesh Faces 15% Fiscal Shortfall After RDG Withdrawal
Synopsis
Key Takeaways
Shimla, March 3 (NationPress) Himachal Pradesh is facing a significant fiscal challenge, grappling with a 15 percent financial gap due to the cessation of the Revenue Deficit Grant (RDG), as stated by Naresh Chauhan, the Principal Media Advisor to the Chief Minister, on Tuesday.
Chauhan emphasized that the withdrawal of the RDG has detrimental effects on nearly every demographic within the state, which boasts a population of around 7.5 million. He pointed out that for a small, mountainous region like Himachal Pradesh, such financial support is crucial for maintaining development projects and public welfare initiatives.
He noted that Article 275 (1) of the Constitution mandates financial aid for special category states to help them achieve self-sufficiency and fiscal stability.
Referring to the findings of the 16th Finance Commission, Chauhan warned that the absence of this essential aid could lead to an annual deficit of nearly Rs 10,000 crore for the state, which could escalate to around Rs 50,000 crore over five years.
He highlighted the impracticality of closing a 15 percent budgetary deficit solely through internal revenue. He asserted that this issue transcends political agendas, framing it as a matter of the state’s rightful claims and future sustainability.
Chauhan mentioned that Chief Minister Sukhvinder Sukhu has engaged in extensive discussions with the Union Finance Minister, presenting detailed facts, constitutional arguments, and rational justifications to protect the state’s interests.
He urged opposition parties to prioritize the collective welfare of Himachal Pradesh over political rivalries.
Regarding the protests that occurred during the AI Summit, Chauhan clarified that the youth were not against the summit itself but were voicing concerns over the possible ramifications of the proposed US-India trade deal, especially on the agriculture and horticulture sectors.
He affirmed that peaceful protests are a fundamental democratic right and should not be mischaracterized as anti-national or harmful to the state's reputation.
On the actions taken by the Delhi Police in Himachal Pradesh, Chauhan criticized operations conducted without warrants and without notifying local police, calling this approach inconsistent with accepted protocols.
In light of the upcoming Rajya Sabha elections, Chauhan indicated that the Congress party holds a numerical advantage in the state Assembly, and the party's candidate will be determined by its High Command.