Sukhu calls on Sitharaman, seeks nod for 2% additional borrowings

Chief Minister Sukhvinder Singh Sukhu today urged Union Finance Minister Nirmala Sitharaman to allow Himachal to raise additional borrowings of two per cent of the Gross State Domestic Product (GSDP), besides review the limit on external funding and the reducing revenue deficit grant (RDG).

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Sukhu, who called on Sitharaman in New Delhi, also raised the issue of the reducing RDG adversely impacting development in the state. He said that the state government had taken many steps to generate additional resources, however, these were insufficient to meet the budgetary obligations for financial year 2025-26. He requested Sitharaman to allow the state to avail of additional borrowings of two per cent of the GSDP for 2025-26.

Sukhu requested the Union Finance Minister to review the limit imposed by the Department of Expenditure on Himachal Pradesh for availing of external financial assistance. “The earlier position for taking external funding must be restored, as the present limit has adversely affected the financial position of the state and many projects are getting stalled,” he added

Sukhu requested Sitharaman to consider a reconstruction and rehabilitation proposal of Himachal for multilateral funding from the World Bank under a new window, which was over and above the ceiling imposed by the Centre.

He also raised the issue of the requirement of additional resources for the creation of infrastructure due to high construction cost in tough topographical and weather conditions. Sitharaman assured Sukhu of sympathetically considering all demands.