Himachal Govt convenes all-party meet on RDG on Feb 13

The Himachal Pradesh Government has convened an all-party meeting on February 13 at the state secretariat to deliberate on the implications of the 16th Finance Commission’s recommendation to discontinue the Revenue Deficit Grant (RDG) to the hill state. The move halted nearly Rs 8,000 crore in annual financial support from the Centre, posing a significant challenge to the state’s fragile finances.

Invitations have been sent to the state presidents of major political parties, including the Congress, BJP, CPM, BSP and AAP. The meeting aims to gather suggestions and build a common strategy to address the financial strain that could arise if the Centre accepts the Commission’s recommendation.

Industry and Parliamentary Affairs Minister Harshwardhan Chauhan said he has personally spoken to several leaders, urging them to attend. He emphasised the need for a collective approach to safeguard Himachal’s interests in view of the looming fiscal crisis. According to him, the situation demands unity across party lines rather than political confrontation.

However, uncertainty remains over the participation of BJP leaders, including Leader of Opposition Jai Ram Thakur. BJP legislators had earlier skipped a presentation made by the Finance Department on February 8 following a Cabinet meeting. Thakur had stated that he chose not to attend because the invitation was issued by the Secretary (Finance) rather than the Chief Minister. He also alleged that a subsequent invitation publicised by the Chief Minister was post-dated.

No BJP MLA attended the February 8 presentation, which was attended by ministers, Congress legislators and senior state officials.

Chief Minister Sukhvinder Singh Sukhu has repeatedly appealed to BJP leaders, MLAs and MPs to rise above political differences and jointly approach Prime Minister Narendra Modi to ensure continuation of the RDG. He maintains that Himachal’s geographical constraints, limited revenue-generation capacity and high infrastructure costs justify continued financial support from the Centre.

The February 13 meeting is expected to test whether political consensus can be forged at a time when the state’s fiscal stability hangs in the balance.