Himachal's Financial Plea: A Fight to Restore Revenue Deficit Grant

In a significant bid to secure financial aid, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday urged Union Finance Minister Nirmala Sitharaman to reconsider the discontinuation of the Revenue Deficit Grant (RDG) to the state. The proposal comes weeks after a legislative push to restore this vital funding channel.

The Chief Minister highlighted that the withdrawal of RDG, commanding 12.7% of the state's budget, has severely stressed Himachal Pradesh's fiscal health. He noted that unlike larger states, which can absorb such financial shocks, hill states are uniquely vulnerable and require tailored economic evaluations and interventions.

Sukhvinder Singh Sukhu further argued that the central government's uniform policy assessment undermines cooperative federalism. He called on the central committee to objectively assess hill economies and emphasize that Article 275(1) of the Indian Constitution supports these compensatory financial grants to states.