Meets Commission Chairman Dr. Arvind Panagariya, highlights Himachal’s financial challenges and sustainable goals
New Delhi — Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met the Chairman of the 16th Finance Commission, Dr. Arvind Panagariya, in New Delhi on Tuesday, advocating for the continuation of the Revenue Deficit Grant (RDG) and the creation of a dedicated ‘Green Fund’ for hill states.
During the meeting, the Chief Minister emphasised the financial hardships faced by hill states like Himachal Pradesh due to geographical challenges and limited avenues for revenue generation. He said the steep reduction in RDG by the 15th Finance Commission had pushed the state into a financial crisis, and urged the Commission to continue this grant in its recommendations.
“Hill states incur significantly higher expenditures due to difficult terrain and scattered habitations. The devolution for such states should be at least double their population share,” Sukhu said.
He also proposed the establishment of a separate ‘Green Fund’ with a fixed annual allocation for hill states, pointing out that the issue had already been raised with the Prime Minister. “This fund is essential to support climate resilience and ecological protection in environmentally fragile regions,” he added.
The Chief Minister apprised Dr. Panagariya of various suggestions sent by the state government, including debt relief measures, disaster management support, state-specific grants, and increased funding for local bodies.
He also highlighted that Himachal Pradesh was among the top-performing states on several indicators, including the Sustainable Development Goals (SDGs), and reiterated the government’s commitment to fiscal discipline.
In response, Dr. Panagariya assured the state of all possible support and appreciated the concerns raised by the Chief Minister.
