In a significant move aimed at rebuilding and rehabilitating Himachal Pradesh, Union Finance Minister Nirmala Sitharaman announced in the Union Budget 2024 the release of financial aid to compensate the state for the extensive damage caused by last year’s devastating floods. This announcement is set to bring much-needed relief to the region, which faced severe destruction during the rainy season.

Presenting the annual budget, Minister Sitharaman emphasized the heavy losses Himachal Pradesh endured due to floods and landslides. She underscored the central government’s commitment to aid the state’s reconstruction and rehabilitation efforts. The financial assistance will be facilitated through multilateral development aid, focusing on repairing and rebuilding crucial infrastructure such as roads, bridges, and buildings that were damaged during the disaster. Additionally, individuals who suffered personal losses will also benefit from this support.

The budget also included provisions for assistance to Assam, Uttarakhand, and Sikkim, which experienced similar natural calamities. However, the emphasis on Himachal Pradesh’s devastation underscores the scale of the disaster the state faced last year. The Himachal Pradesh government had initially requested approximately Rs 9,000 crore from the central government, including a special relief package and the declaration of the situation as a national disaster.

A central team had assessed the damage in Himachal Pradesh and reported an initial loss of around Rs 3,000 crore to the central government, based on the central relief manual. However, the state government has continually argued that the assessments were not accurate according to the central government’s disaster relief manual. Despite these discrepancies, the central budget has provided a platform for Himachal Pradesh to seek substantial assistance to address its losses.

While the exact amount of aid allocated to Himachal Pradesh was not specified in the budget, the announcement has opened the door for the state government to push for comprehensive support from the center. This financial aid is expected to play a critical role in the recovery and rebuilding efforts in the disaster-affected regions of Himachal Pradesh.