Chief minister Sukhvinder Singh Sukhu met Union finance minister Nirmala Sitharaman in New Delhi on Tuesday. He apprised the Union minister of the current financial position of Himachal Pradesh and the financial challenges being faced by the state. He urged the Union government to provide additional financial assistance, keeping in view the state’s unique geographical and economic condition.
The CM said that with the discontinuation of the Revenue Deficit Grant (RDG) from the financial year 2026-27, following the recommendations of the 16th Finance Commission, Himachal Pradesh is facing an annual financial gap of around ₹8,000 crore. He said the continuous reduction in the Revenue Deficit Grant over the past few years had further increased pressure on the state’s finances.
He said that Himachal Pradesh, being a hill state, faces difficult geographical conditions, high vulnerability to natural disasters and higher costs of creation and maintenance of infrastructure, making the delivery and operation of public services comparatively more expensive.
Sukhu said that despite limited resources, the state government has been making sustained efforts to improve its financial position through various financial reforms and revenue-generation measures. He emphasized that, in view of the state’s geographical conditions and the heavy losses caused by natural disasters in recent years, additional support from the Union Government is essential.
The CM also requested that the state’s borrowing limit be enhanced from the existing 3 to 4 percent of the Gross State Domestic Product.
{{/usCountry}}The CM also requested that the state’s borrowing limit be enhanced from the existing 3 to 4 percent of the Gross State Domestic Product.
{{/usCountry}}He urged the Union minister to assess Himachal’s financial challenges in the context of its unique geographical and economic circumstances and sought generous financial assistance and necessary approvals from the Union government in the larger interest of the state.
Sitharaman assured the CM that the demands raised by the Himachal government would be considered sympathetically, keeping in view the state’s financial requirements and developmental priorities. Acknowledging the financial challenges faced by the state, she assured that the Union government would extend necessary support to meet its legitimate financial requirements.
Seeks time-bound scientific dredging of flood-hit river stretches
The CM had urged the Union government to issue clear and enabling guidelines based on the decisions and recommendations of the Forest Advisory Committee, so that proposals related to dredging could be processed and disposed of in a time-bound manner.
Sukhu raised this demand during his meeting with the Union minister for environment, forest and climate change Bhupender Yadav in New Delhi on Tuesday and discussed various important issues related to scientific dredging in flood-affected river areas of Himachal Pradesh.
The CM said that excessive rainfall, floods and flash floods lead to the accumulation of large quantities of debris, boulders, stones and sand in river channels, adversely affecting their water-carrying capacity and increasing the risk of flooding to human settlements, roads, bridges, forests and other critical infrastructure.
He said that the scientific and time-bound dredging in such vulnerable areas is essential from the perspective of disaster risk reduction.
Yadav assured the CM that clear and enabling guidelines would be issued for scientific dredging in Himachal to minimize losses caused by floods and other natural disasters.
Presses for providing renewable energy certificates
The CM raised the issue of providing Renewable Energy Certificates (RECs) against Himachal Pradesh’s free power entitlement during his meeting with the Union minister for power and housing and urban affairs Manohar Lal Khattar in New Delhi on Tuesday
The CM raised the issue of providing RECs against Himachal’s free power entitlement. He said the state should receive due benefits against its free power share and sought necessary clarification and an early resolution in the matter.
The CM discussed several important pending issues concerning Himachal’s power sector. He urged the Union minister to facilitate their early resolution in the interest of the State.
He also raised the issue of nominating two independent directors from Himachal Pradesh on the Board of Directors of Satluj Jal Vidyut Nigam (SJVN) and urged that the process be completed at the earliest, keeping the interests of the state in view.
Khattar assured him of positive consideration of matters concerning Himachal’s power interests.