Abolishing revenue deficit grant matter of people’s rights, not politics: Himachal CM Sukhu
‘The state government is hopeful that PM Modi will sympathetically consider Himachal’s case’
A special Cabinet meeting was held here on Sunday to assess the impending financial crisis following the 16th Finance Commission’s recommendation to discontinue the Revenue Deficit Grant (RDG) to Himachal Pradesh.
Addressing a press conference after chairing the meet, Chief Minister Sukhvinder Singh Sukhu said the state government was hopeful that Prime Minister Narendra Modi would sympathetically consider Himachal’s case, either by continuing the RDG or by providing a special financial package. He asserted that the issue was not political but one of safeguarding the rights and interests of the people of the state.
A detailed presentation on the state’s financial position and the likely impact of abolishing RDG was made by the Finance Department in the presence of the Chief Minister, Deputy Chief Minister Mukesh Agnihotri, Vidhan Sabha Speaker Kuldeep Pathania, Cabinet ministers, MLAs and senior officers. BJP legislators, including Leader of Opposition Jai Ram Thakur, skipped the meeting despite being personally invited by the Chief Minister.
Expressing disappointment, Sukhu said BJP MLAs should have attended the presentation to understand the gravity of the fiscal stress the state would face if RDG is withdrawn. “I personally wrote to every BJP MLA, including the Leader of Opposition, but they chose not to attend, which is unfortunate,” he said.
The Chief Minister said the state’s own revenue stood at around Rs 18,000 crore, while committed expenditure was nearly Rs 48,000 crore, largely on salaries, pensions, loan repayments, subsidies and social security pensions. While RDG has been withdrawn for 17 states, Himachal Pradesh would be among the worst affected, as 12.7 per cent of its budget depends on the grant, the second highest share after Nagaland.
Sukhu assured that all welfare schemes would continue and efforts would be intensified to augment state resources. He also flagged pending issues, including Rs 4,500 crore in BBMB arrears unpaid since 2012 despite a Supreme Court verdict, and the legal battle to reclaim the Shanan power project from Punjab. He noted that unlike other states facing RDG withdrawal, Himachal has limited revenue sources, primarily rivers and forests.
