CM meets Sitharaman, seeks 2% hike in borrowing limit

Chief Minister Sukhvinder Singh Sukhu has urged the Centre to enhance the state’s borrowing limit by 2 per cent for the remainder of the 2025–26 financial year, citing severe fiscal stress.

During a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi, accompanied by Rajya Sabha MP and Himachal Congress in-charge Rajni Patil, Sukhu sought a liberal approach towards financial assistance and grants, including relaxation in the existing loan borrowing limit.

He pointed out that despite ongoing efforts to improve revenue collection, the state’s fiscal health has deteriorated due to reduced revenue deficit grants and repeated natural calamities over the past three years. “The revenue deficit grant has fallen from Rs 10,249 crore in 2020–21 to Rs 3,257 crore in 2025–26 under the 15th Finance Commission,” Sukhu said, adding that Himachal has suffered losses of around Rs 18,000 crore and the death of 1,321 people due to disasters in this period.

The Chief Minister also highlighted the impact of recent GST rate rationalisation, which has narrowed the state’s tax base and further strained its finances. He requested the Centre to extend special assistance under the Special Central Assistance scheme and approve additional projects in the health sector.

Sitharaman assured that the state’s demands would be considered sympathetically and promised additional support to help Himachal stabilise its economy amid ongoing fiscal challenges.