Himachal CM Urges Centre for Rs 10,000 Crore Annual Revenue Deficit Grant
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu held a crucial meeting with Union Finance Minister Nirmala Sitharaman in New Delhi on Thursday. During this important discussion, Sukhu presented detailed memorandums submitted to the 16th Finance Commission. He strongly advocated for establishing a minimum annual Revenue Deficit Grant of Rs 10,000 crore specifically for Himachal Pradesh.
Realistic Assessment of State Finances Needed
The Chief Minister emphasized the urgent need for a realistic evaluation of state revenues and expenditure projections. This assessment should cover the entire award period of the upcoming 16th Finance Commission. Revenue Deficit Grants represent vital financial assistance provided by the central government to states under Article 275 of the Constitution. These funds help bridge gaps in state revenue accounts following tax devolution, ensuring essential spending on welfare programs and administrative functions can continue uninterrupted.
Sukhu highlighted the precarious financial situation facing Himachal Pradesh. The state's debt burden has now crossed a staggering Rs 1 lakh crore mark. He appealed directly for central support to strengthen Himachal's fiscal health and stabilize its economy.
Proposal for Separate Green Fund for Hill States
In a significant proposal, the Chief Minister pleaded for creation of a dedicated "Green Fund" with an annual allocation of Rs 50,000 crore. This fund would specifically benefit hill states that serve as ecological frontiers and vital green lungs for North India. Sukhu argued these states deserve special consideration due to the crucial ecological services they provide to the entire nation.
The meeting also covered proposed revisions to horizontal devolution formulas. Sukhu presented the state's revised formula that would increase weightage for Forest and Ecology criteria. He specifically requested inclusion of snow-covered cold desert areas above tree lines alongside very dense and moderately dense forest regions, citing their symbiotic relationships.
Demand for Revised Disaster Risk Assessment
Sukhu raised serious concerns about the Disaster Risk Index developed by the 15th Finance Commission. He stressed that Himalayan regions cannot be equated with other parts of the country when assessing disaster risks. "The state has faced deprivation of adequate resources for disaster relief despite experiencing heavy natural calamities," Sukhu stated during the meeting.
The Chief Minister demanded creation of a separate Disaster Risk Index specifically for hill states. This revised index should consider their unique geographical indicators and vulnerability factors. He also called for separate financial allocations to address the distinct disaster management needs of Himalayan regions.
Request for Additional Borrowing Capacity
Seeking immediate fiscal relief, Sukhu requested permission for additional borrowing equivalent to two percent of Himachal Pradesh's Gross State Domestic Product. He explained that steep reductions in Revenue Deficit Grants over recent years have severely constrained the state's available fiscal space, limiting essential development initiatives.
Urgent Protection for Apple Growers
The Chief Minister brought pressing concerns of Himachal's apple growers directly to the Finance Minister. He urged immediate imposition of 100 percent import duty on foreign apples alongside a seasonal import ban. These measures aim to protect the state's vital apple economy from damaging foreign competition.
Sukhu demanded urgent intervention against the rising influx of imported apples. His specific requests included:
- Classification of apples under a 'Special Category' for trade purposes
- Complete import ban during peak production season from July through November
- Implementation of quantitative restrictions on apple imports throughout the year
The Chief Minister flagged particular concerns about duty concessions granted to apples imported from New Zealand. "These concessions directly hurt our local orchardists and undermine their livelihoods," Sukhu emphasized during the discussion.
Political Dimensions of the Apple Issue
Sukhu questioned the Bharatiya Janata Party's silence on apple import issues affecting Himachal Pradesh. He urged the opposition party in the state to actively raise growers' concerns at the central government level, emphasizing the need for bipartisan support to protect this crucial agricultural sector.
The comprehensive meeting covered multiple dimensions of Himachal Pradesh's financial challenges and agricultural concerns. Sukhu's detailed presentations and specific demands reflect the state government's urgent efforts to secure both fiscal stability and protection for key economic sectors.
