Calls for liberal financial support citing revenue losses, disaster damage of Rs 18,000 crore
TNR News Network
NEW DELHI: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi and urged the Centre to allow the state an additional 2% increase in borrowing limit for the remainder of the 2025-26 financial year.
The Chief Minister requested the Union Minister to adopt a liberal approach towards financial assistance and grants, pointing out that the state’s fiscal position has been under pressure due to a steep reduction in revenue deficit grants and heavy losses caused by recurring natural disasters over the past three years.
State’s revenue deficit grants sharply reduced
Sukhu highlighted that Himachal’s annual revenue deficit grant had dropped from Rs 10,249 crore in 2020-21 to Rs 3,257 crore in 2025-26 under the 15th Finance Commission’s award period. He said the state has incurred an estimated Rs 18,000 crore in losses due to natural calamities during the same period, resulting in the loss of 1,321 lives and extensive infrastructure damage.
He also noted that the recent rationalisation of Goods and Services Tax (GST) rates had reduced the tax base, further weakening the state’s fiscal position. In light of these challenges, the Chief Minister sought enhanced central support and flexibility in fiscal management.
Finance Minister assures sympathetic consideration
Sukhu apprised Sitharaman of various measures being undertaken by the state government to boost revenue through limited resources and structural reforms. He reiterated that greater central assistance would help Himachal rebuild critical infrastructure and sustain development in key sectors such as health and education.
The Finance Minister assured that the state’s demands would be considered “sympathetically” and additional help may be extended under special central assistance. She also said Himachal’s proposals, particularly for the health sector, would be examined for further approvals.
Rajya Sabha MP and Himachal Congress in-charge Rajni Patil, Chief Minister’s Principal Adviser Ram Subhag Singh, Principal Secretary Devesh Kumar, Principal Resident Commissioner Ajay Kumar and senior officials from the Union Finance Ministry were present at the meeting.
