Shimla, February 8: Central Minister for Culture and Tourism, Gajendra Singh Shekhawat, clarified on Sunday that Himachal Pradesh has received significantly more Revenue Deficit Grant (RDG) in recent years compared to previous years.
However, he also indicated that states need to strengthen their revenue systems and adopt fiscal discipline. He stated that instead of relying solely on central assistance, states must reinforce their financial frameworks.
During a media interaction, the minister explained that the fiscal deficit is fundamentally the difference between revenue and expenditure. He emphasized that it can only be reduced through structural financial reforms, not through political blame games. For long-term solutions, he stressed the importance of seriously addressing both expenditure priorities and revenue collection.
Shekhawat was responding to Chief Minister Sukhvinder Singh Sukhu’s statement regarding the long-term impact of the 16th Finance Commission report on Himachal Pradesh’s economy, particularly concerning the upcoming budget for 2026-27. Sukhu also mentioned that the termination of RDG is not just a government issue but a matter of the rights of the state’s citizens. He expressed readiness to meet with Prime Minister Narendra Modi alongside BJP MPs and legislators, believing that once the RDG provision is abolished, reclaiming the rights of the people will be challenging.
In response, Minister Shekhawat clarified that RDG has always been viewed as a temporary and transitional support system. He noted that it was first implemented based on recommendations from previous finance commissions to assist states facing financial crises, enabling them to manage short-term deficits. He firmly stated that its purpose was never intended to be a permanent entitlement.
He explained that successive finance commissions have approached this system with great caution. Notably, during the tenure of the 15th Finance Commission, RDG assistance was provided at unprecedented levels in advance to help states recover during the COVID-19 pandemic. This support was crucial in helping states maintain economic stability during that challenging period.
–
ASh/MS
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment