Himachal CM Sukhu demands separate Green Fund for hill states
Urges Rs 50,000 cr annual allocation, revised disaster index and fiscal relief for Himalayan regions
Himachal Chief Minister Sukhvinder Singh Sukhu on Thursday called for the creation of a separate Green Fund for hill states, with an earmarked annual allocation of Rs 50,000 crore, describing these states as the green frontiers and lungs of North India.
During his meeting with Union Finance Minister Nirmala Sitharaman in New Delhi, the Chief Minister highlighted the unique ecological and fiscal challenges faced by Himalayan states. He informed the Union Minister about the revised formula proposed by Himachal Pradesh for horizontal devolution, seeking higher weightage for forest and ecology criteria. Sukhu stressed that snow-covered and cold desert areas above the tree line should also be included along with very dense and moderately dense forests, given their close ecological interdependence.
The Chief Minister apprised the Union Finance Minister about the memorandum and additional memorandum submitted to the 16th Finance Commission. He urged that the Revenue Deficit Grant (RDG) be fixed at a minimum of Rs 10,000 crore annually, underlining the need for a realistic assessment of states’ revenues and expenditure projections during the commission’s award period.
Raising concerns over disaster funding, Sukhu called for reframing the Disaster Risk Index (DRI) formulated by the 15th Finance Commission. He argued that Himalayan regions cannot be treated on par with other parts of the country, as they are far more vulnerable to natural disasters. He demanded a separate DRI and exclusive disaster allocation for hill states.
The Chief Minister also sought permission for additional borrowing of 2 per cent of GSDP, stating that a sharp decline in RDG in recent years has severely restricted the state’s fiscal space.
