CM Sukhu Urges Finance Commission for Greater Support to Hill States, Calls for Revenue Deficit Grant and Green Fund
Shimla, July 15: Chief Minister Sukhvinder Singh Sukhu has called for increased financial support to hill states, highlighting that the cost of development and service delivery in mountainous regions is significantly higher than in the plains. He stressed that hill states should receive at least twice the share of resources compared to other states, based on population.
During a meeting with Finance Commission Chairman Dr. Arvind Panagariya, the Chief Minister urged the continuation of the Revenue Deficit Grant, keeping in mind Himachal Pradesh’s challenging topography and limited revenue-generating capacity. He noted that the 15th Finance Commission had drastically reduced this grant, which has pushed the state into financial distress.
Sukhu also appealed for a separate Green Fund to be created in the Union Budget specifically for hill states. He mentioned that this proposal had already been discussed with the Prime Minister.
In addition, the Chief Minister shared the state’s suggestions related to disaster management, debt relief, grants for local bodies, and special assistance for the state. He urged the Commission to consider and incorporate these recommendations in its report.
Dr. Panagariya assured the Chief Minister of full support from the Centre.
Chief Secretary Prabodh Saxena and the Chief Minister’s Principal Advisor Ram Subhag Singh were also present during the meeting.
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