Himachal's Fiscal Concerns: A Battle for Rights
Himachal Pradesh's Chief Minister, Sukhvinder Singh Sukhu, expressed concern over the abolition of the Revenue Deficit Grant, emphasizing it as a rights issue for the people. He plans to engage with central leaders in Delhi and highlighted the adverse impacts of GST on the state's economy.
- Country:
- India
Chief Minister Sukhvinder Singh Sukhu of Himachal Pradesh has voiced serious concerns over the central government's decision to abolish the Revenue Deficit Grant (RDG). He described the cessation as impacting the rights of the state's citizens, following a financial review presentation by the state's Department of Finance on Sunday.
Sukhu emphasized that the elimination of these grants will severely affect the state's economy, which relies on them for 12.7% of its budget. The state's fiscal challenges are exacerbated by the Goods and Services Tax (GST) regime, which has lowered tax collection growth and affected Himachal's economy due to its status as a producer state.
In response, Sukhu plans to seek intervention from Prime Minister Narendra Modi, alongside BJP MPs and MLAs, to restore these grants. He also called for enhanced royalties on power projects to mitigate financial shortfalls, urging the central government to return projects that have reached 40 years of operation.
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