Himachal CM calls on Nirmala Sitharaman for liberal grants

October 29, 2025

New Delhi: Himachal Pradesh Chief Minister Sukhvinder Sukhu on Wednesday met Union Finance Minister Nirmala Sitharaman in New Delhi and requested her to adopt a liberal approach towards providing financial assistance and grants to the state.

Request for Higher Borrowing Limit

Considering the current financial situation of the state, the Chief Minister urged an increase in the additional borrowing limit by 2 per cent for the remaining period of this fiscal year.

Revenue Deficit and Disaster Losses

The Chief Minister highlighted that despite the state government’s best efforts to enhance revenue, Himachal’s financial health has been severely impacted due to regular reductions in revenue deficit grants and massive losses from natural disasters over the past three years.

CM Sukhu noted that the revenue deficit grant had declined sharply from Rs 10,249 crore in 2020-21 to Rs 3,257 crore in 2025-26 under the 15th Finance Commission’s allocation period.

He also mentioned that the state had suffered losses amounting to around Rs 18,000 crore due to natural disasters over the past three years, which led to the death of 1,321 people and extensive damage to resources and infrastructure.

Impact of GST Rationalisation

The Chief Minister said that the recent rationalisation of Goods and Services Tax (GST) rates had further adversely affected the state’s financial position, primarily due to the reduction in the tax base.

Appeal for Liberal Central Support

In light of the difficult fiscal circumstances, CM Sukhu reiterated that adequate and liberal central assistance should be provided to help the state recover.

He also apprised the Finance Minister of the measures being undertaken by the state government to improve its financial situation through limited available resources.

Centre’s Assurance

Union Finance Minister Nirmala Sitharaman assured the Chief Minister that the state’s demands would be considered sympathetically.

She also assured that additional assistance would be extended under Special Central Assistance, and Himachal Pradesh would be considered for more approvals, particularly for health sector projects.

Meeting Attendees

Rajya Sabha MP Rajni Patil, who also serves as the state Congress in-charge, was among those present at the meeting.