2 months ago
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Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu connected Monday (March 2, 2026) sought a peculiar fiscal bundle from the Centre to screen the State’s gross shortage for the fiscal twelvemonth 2026-27.
During a gathering with Union Finance Minister Nirmala Sitharaman successful New Delhi, Mr. Sukhu claimed that the discontinuation of the Revenue Deficit Grant (RDG) would person a far-reaching adverse interaction connected the State’s fiscal health.
“Himachal Pradesh cannot beryllium compared with different States whose RDG has been discontinued. The RDG publication for the State was astir 12.7%, the 2nd highest aft Nagaland. Big States tin withstand the discontinuation (of RDG), but the system of Himachal Pradesh can’t,” helium said, adding that assessing each States connected a azygous yardstick was neither steadfast nor transparent.
The Chief Minister said, “The determination undermines the tone of cooperative federalism”. He stated that Article 275(1) of the Constitution allows specified grants to the State that cannot span the spread betwixt their gross receipts and expenditure. He added that this was the archetypal clip that the Finance Commission had ignored the developmental needs of tiny elevation States.
Mr. Sukhu besides requested the Union Finance Minister to represent a committee to measure the economical challenges faced by elevation States and urge corrective measures.
In a statement, helium said the State has taken respective steps implicit the past 2 to 3 years to amended its fiscal position, including reducing expenditure, avoiding off-budget borrowings, and raising astir ₹600 crore annually done assorted cesses. “However, the State suffered gross losses owed to (the implementation of) GST. Despite raising taxation rates wherever feasible and rationalising subsidies, the spread successful gross shortage could not beryllium bridged,” helium added.
