New Delhi: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi on Thursday, seeking urgent financial assistance and relaxation of borrowing limits to support the state’s development projects.
During the meeting, CM Sukhu urged the Finance Minister to review the restrictions imposed by the Department of Expenditure on external assistance for the state, stating that these limits have severely impacted Himachal Pradesh’s financial position and stalled several projects. He requested the Centre to restore the previous funding arrangement to ensure the completion of ongoing works.
The Chief Minister also sought approval for a special reconstruction and rehabilitation proposal from the state to receive multilateral funding from the World Bank. He emphasized that this funding should be considered under a separate window, beyond the borrowing ceiling imposed by the Ministry.
Raising concerns over the reduction in Revenue Deficit Grants, CM Sukhu pointed out that while the state government has undertaken measures to boost revenue, they remain insufficient to meet the budgetary needs for the financial year 2025-26. He appealed for an additional borrowing allowance of 2 percent of the Gross State Domestic Product (GSDP) for the next fiscal year.
Additionally, the Chief Minister highlighted the challenges posed by Himachal’s difficult terrain and harsh weather conditions, which significantly increase construction costs. He urged the Centre to provide additional financial support to develop critical infrastructure in the state.
