CM Sukhu Seeks Financial Relief for Himachal in Meeting with Union Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman and CM Sukhu
Shimla, March 20, 2025 – In a bid to secure much-needed financial support for the state, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi today. The meeting was centered around addressing key issues affecting the financial stability and growth of Himachal Pradesh, including stalled projects, funding restrictions, and infrastructure challenges.
One of the main points discussed during the meeting was the financial constraint imposed on Himachal Pradesh due to the limits set by the Department of Expenditure for receiving external assistance. The Chief Minister requested that the Finance Minister review these limits and restore the previous status quo, which had allowed the state to access more resources. Sukhu emphasized that the current restrictions were adversely impacting the state’s financial position, with many ongoing projects being delayed or stalled.
In his discussion, Sukhu also urged the Union Minister to consider funding the reconstruction and rehabilitation proposal that Himachal Pradesh had submitted under the new multilateral funding window provided by the World Bank. He noted that the proposed funding amount exceeded the limit currently set by the Department of Expenditure. Sukhu stressed that these funds were crucial for the state’s recovery efforts following natural calamities and ongoing infrastructural development challenges.
Additionally, the Chief Minister raised concerns regarding the revenue deficit grant provided to Himachal Pradesh, which he claimed had been reduced. He pointed out that the state government had undertaken several steps to generate additional revenue, but these measures were insufficient to meet the budgetary requirements for the upcoming financial year, 2025-26. As a solution, Sukhu requested that the Union Government allow the state to borrow an additional 2 percent of its Gross State Domestic Product (GSDP) for the next fiscal year to bridge the financial gap.
The Chief Minister also brought up the issue of the high cost of construction in Himachal Pradesh, citing the state’s difficult geographical and meteorological conditions. Sukhu explained that the cost of building infrastructure, such as roads, bridges, and other critical projects, was significantly higher in Himachal due to its mountainous terrain and frequent adverse weather conditions. He requested additional resources to support these infrastructure projects and ensure their timely completion.
Union Finance Minister Nirmala Sitharaman assured the Chief Minister that she would consider the demands sympathetically and work toward addressing the state’s financial challenges. Sitharaman acknowledged the unique difficulties faced by Himachal Pradesh due to its topography and climatic conditions and expressed her commitment to providing adequate support for the state’s development needs.
The meeting was attended by key officials from the state government, including Chief Secretary Prabodh Saxena, Principal Advisor to the Chief Minister Ram Subhag Singh, and Resident Commissioner Meera Mohanty. They played an important role in outlining the specific issues affecting the state’s finances and providing a detailed overview of the state’s financial requirements for the upcoming years.
The meeting between CM Sukhu and Union Finance Minister Sitharaman comes at a critical time for Himachal Pradesh, as the state navigates economic challenges exacerbated by natural disasters, high infrastructure costs, and the need for additional resources to meet its fiscal obligations. With the financial year 2025-26 just around the corner, the Chief Minister’s efforts to secure additional funding and support from the central government are seen as crucial for the state’s growth and development.
The outcome of this meeting will likely have a significant impact on Himachal Pradesh’s financial planning and its ability to complete critical infrastructure projects that are vital for the state’s economic stability. With the Finance Minister’s assurance to consider the state’s demands, all eyes will be on the Union Government’s next steps in addressing Himachal Pradesh’s financial concerns and providing the necessary resources for its development.
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