Himachal’s Revenue Deficit Grant should increase: CM Sukhu

Chief Minister Sukhu said that the previous BJP government had made the state a debtor.

Shimla: The team of the 16th Finance Commission is on a 3-day visit to Himachal. The Finance Commission team, which reached the state under the leadership of Chairman Dr. Arvind Panagariya, today held a meeting with the Chief Minister of Himachal, Cabinet Minister, and State Government officials and heard the problems of the state.

During this, the Himachal government requested the 16th Finance Commission to increase the Revenue Deficit Grant (RDG). After the meeting with the Finance Commission, Chief Minister Sukhwinder Sukhu told the commission that the RDG, which was getting Rs 10 thousand crores during the tenure of the BJP government, has now come down to about Rs 3000 crores.

Chief Minister Sukhu said that the previous BJP government had made the state a debtor. A new loan has to be taken to repay the old loan. He said that water and forests are important assets of the state. But when the state government imposes a cess on water, the court stays with it. 68 percent of the land in the state is covered by forest; a ban has been imposed on it. Considering all these things, Himachal should get RDG.

The Chief Minister said the state requested from the Finance Commission that there should be different criteria for giving grants to the hills and plains states for disaster. The cost in the mountains is much higher than in the plains. Therefore, the criteria for giving disaster funds to the plains and hills should not be the same.

Dr. Arvind Panagariya said in a press conference after the meeting that the commission has heard the problems of the state. The commission has started with Himachal Pradesh. It is not right to say at this stage what the criteria for budget allocation will be in the 16th Finance Commission. Taxes will also be assessed now, and budget allocation will be done on that basis.