New Delhi, September 8 (Daily Kiran) : Himachal Pradesh Chief Minister Thakur Sukhu met with Union Finance and Corporate Affairs Minister Nirmala Sitharaman in New Delhi on Tuesday. During their discussion, he urged the central government to provide additional financial assistance to the state, highlighting the current fiscal challenges faced by Himachal Pradesh.
Sukhu pointed out that the cessation of revenue deficit grants following the recommendations of the 16th Finance Commission would leave the state with an annual financial gap of approximately ₹8,000 crores starting in the 2026-27 fiscal year. He noted that ongoing cuts to these grants have significantly increased financial pressure on the state’s budget.
The Chief Minister emphasized that Himachal Pradesh, being a mountainous region, faces unique challenges. Difficult geographical conditions, heightened vulnerability to natural disasters, and the high costs associated with infrastructure development and maintenance make public service delivery relatively expensive.
Despite limited resources, Sukhu assured that the state government is continuously working to improve its financial situation through reforms and revenue-enhancing measures. However, he stressed that recent natural disasters have created an urgent need for additional support from the central government.
During the meeting, Sukhu presented several key requests to the Finance Minister. He urged for exemptions under the Special Assistance Scheme for Capital Investments (SASCI) regarding supply and vendor payments based on the SNA-touch model.
Additionally, he requested an increase in allocations for externally aided projects and proposed doubling the assistance under this component, considering the state’s challenging geographical conditions and higher costs.
Sukhu also sought to raise the state’s borrowing limit from the current 3% to 4% of the Gross State Domestic Product (GSDP). He explained that such an increase would enable the state to meet its financial commitments and gather resources for essential public services and development projects.
He urged the central minister to assess Himachal’s financial challenges in light of its unique geographical and economic circumstances and to provide generous financial support and necessary approvals in the state’s interest.
Furthermore, Sukhu shared details of the reforms being implemented by the state government. He noted that Himachal has become the first state in India to provide a minimum support price (MSP) for crops produced through natural farming. This initiative aims to ensure profitable prices for farmers, enhance rural family incomes, and strengthen the state’s economy. He mentioned that the government is taking various steps to bolster the rural economy.
In response, Finance Minister Nirmala Sitharaman assured Sukhu that the central government would sympathetically consider the state’s demands, taking into account its financial needs and developmental priorities. She acknowledged the financial challenges faced by Himachal Pradesh and committed to providing the necessary support to meet the state’s legitimate financial requirements.
Sitharaman also promised that additional financial assistance under special central support for Himachal would be considered to help the state fulfill its development needs and strengthen its financial position.
The meeting was attended by key officials, including Himachal’s Chief Secretary Kamlesh Kumar Pant, Chief Minister’s Principal Advisor Ram Subhag Singh, Principal Secretary (Finance) Devesh Kumar, Chief Minister’s Secretary Rakesh Kanwar, Principal Resident Commissioner Ajay Kumar, and senior officials from the Union Finance Ministry.
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