Himachal CM Sukhu pushes for Rs 90,000-crore ecological compensation

Chief Minister Sukhvinder Singh Sukhu on Wednesday reiterated that Himachal Pradesh’s financial distress is comparable to the Sri Lankan crisis and pressed the Centre to compensate the state Rs 90,000 crore for preserving forests and rivers that serve as the “lungs of North India”.

Speaking to mediapersons after returning from New Delhi, Sukhu said the ecological value of the state’s natural resources had been assessed by the Indian Institute of Forest Management and justified substantial compensation. He added that he had also discussed the state’s fiscal situation with former Union Finance Minister P Chidambaram.

Sukhu said he had anticipated the crisis soon after assuming office. “From January 1, 2023, I had indicated that Himachal could face a Sri Lanka-like situation due to mounting economic stress,” he said, adding that his government moved early to enforce fiscal discipline. Measures included curbing unproductive expenditure, withdrawing power subsidy for income tax payees, increasing water tariffs for commercial establishments in rural areas and revising tariffs at Himachal Bhawan, Circuit Houses and Rest Houses.

The Chief Minister asserted that while the government would not abolish posts, it remained committed to generating employment. He claimed that only half the number of Chairmen and Vice-Chairmen had been appointed compared to the previous BJP regime, based strictly on necessity.

Listing structural steps, Sukhu said the state had curtailed IAS, IPS and IFS cadres to rationalise spending. The number of Indian Forest Service posts has been reduced from 110 to 86. Officer-level positions have been pruned, while lower-level posts have been increased to improve administrative efficiency.

He warned that the abolition of the Revenue Deficit Grant (RDG) would cost the state nearly Rs 10,000 crore annually between 2026 and 2031. “This would deprive the people of their rightful dues,” he said, urging BJP leaders to press the Prime Minister for restoration of the grant instead of criticising him. Though he has repeatedly called for a united stand, he expressed doubt over the Opposition’s willingness to cooperate.

Sukhu said the government had cleared arrears of all beneficiaries above 70 years of age and mobilised Rs 38,000 crore over the past three years, reflecting fiscal prudence. He alleged that the previous BJP government failed to repay debt despite receiving substantial Central assistance, including RDG and GST compensation, aggravating the present crisis.