Shimla: The Sixteenth Finance Commission has abolished the provision for Revenue Deficit Grants for states. Himachal Pradesh has been the most affected by this. The Revenue Deficit Grant that Himachal received based on the recommendations of the previous Finance Commission averaged approximately 12.71 percent of the state’s budget size annually. Chief Minister Sukhwinder Singh Sukhu and his government made strenuous efforts to persuade the Finance Commission to recommend a generous RDG considering Himachal’s economic situation, but the entire grant system has been scrapped.
Now, the Himachal Pradesh government wants to convey its distress and anger to Prime Minister Narendra Modi. Chief Minister Sukhwinder Singh Sukhu says, “Neither the Finance Commission nor Finance Minister Nirmala Sitharaman could do anything in this matter. Now this issue will be raised before PM Narendra Modi.” PM Narendra Modi calls Himachal Pradesh his second home. During his time working in the BJP organization, he was in charge of the Himachal BJP. He has visited various parts of Himachal Pradesh and studied the region in great detail. PM Narendra Modi is well aware of Himachal’s problems. Although Himachal Pradesh has progressed in various sectors since its formation, the small hill state has never been able to stand on its own feet economically. There are several reasons for this: the challenging geographical environment, inaccessible terrain, 66 percent forest cover, disputes over royalties from power projects, non-receipt of arrears from BBMB, the ownership issue of the Shanan Project, and relatively low profits from hydro projects built on the rivers flowing through the state.
Met with the Finance Minister, now it’s the PM’s turn
Chief Minister Sukhwinder Singh Sukhu says that BJP leaders are saying that they are ready to meet Finance Minister Nirmala Sitharaman under their leadership, but they should understand that this issue can now only be raised before PM Narendra Modi. The CM said that he has already met the Finance Minister four times. This decision is no longer in the hands of the Finance Minister. The Prime Minister will now make the final decision.
The Chief Minister has told BJP leaders to schedule a meeting with Prime Minister Modi, and he is ready to accompany them. The Chief Minister has asked the BJP leaders to arrange a meeting with the PM. While this is still under discussion, and the state government is also considering taking the matter to court, Himachal Pradesh has not yet received the ₹1,500 crore relief package announced by Prime Minister Narendra Modi. The PM had announced this package for those affected by the disaster in Himachal Pradesh.
