Himachal CM Sukhu calls on Sitharaman
Himachal CM Sukhu said that the state government has taken many steps for additional resource mobilization, however, these are insufficient to meet the budgetary obligations for the financial year 2025-26. He requested the minister to allow the state an additional borrowing of 2 percent of the GSDP for 2025-26.
Himachal chief minister Sukhvinder Singh Sukhu called on Union Finance Minister Nirmala Sitharaman at New Delhi on Thursday to raise the issue of reducing Revenue Deficit Grants (RDG). Facing fiscal challenges, Sukhu has requested to allow the state an additional borrowing of 2% of the GSDP for 2025-26.
Sukhu said that the state government has taken many steps for additional resource mobilization, however, these are insufficient to meet the budgetary obligations for the financial year 2025-26. He requested the minister to allow the state an additional borrowing of 2 percent of the GSDP for 2025-26.
He requested the finance minister to review the limit imposed by the department of expenditure on Himachal Pradesh for availing external assistance and urged to restore the position as it has adversely affected the financial position of the state, and many projects are stalled.
He further requested to consider funding of a reconstruction and rehabilitation proposal from HP for multilateral funding from the World Bank under a new window, which is over and above the ceiling imposed by the Ministry.
He also raised the issue of the requirement of additional resources for creating infrastructure due to high-cost construction due to tough topographical and weather conditions.
Sitharaman assured him of sympathetic consideration of the demands.
