Shimla (Himachal Pradesh) [India], September 11 (ANI): Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday urged that the Revenue Deficit Grant (RDG) continue for revenue-deficient states like Himachal Pradesh, requesting that it be maintained at a minimum of Rs 10,000 crore annually.
CM Sukhu stated, “The justification for continuation and quantum of RDG has been reflected in the additional memorandum and main memorandum submitted by the State Government to the Finance Commission.” He emphasised that the RDG should not be tapered and must be determined based on a realistic assessment of the state’s revenues and expenditure projections during the award period by the 16th Finance Commission.
During a meeting with 16th Finance Commission Chairman Arvind Panagariya in New Delhi, Sukhu highlighted the challenges faced by Himachal Pradesh over the past three years due to natural disasters, which resulted in losses exceeding Rs 15,000 crore, including damage to lives, environment, and infrastructure. He noted that the Supreme Court had observed in July 2025 that revenue generation could not come at the cost of the environment and ecology, underscoring the state’s limited scope for revenue growth due to its hilly terrain and extensive forest coverage.
The Chief Minister requested that the Finance Commission increase the weightage for forest and ecology criteria and include snow-covered and cold desert areas above the tree line along with dense and moderately dense forests. He also proposed the creation of a separate ‘Green Fund’ with an annual allocation of Rs 50,000 crore for hill states to compensate for ecological services, potentially structured under Special Central Assistance to States for Capital Investment (SASCI).
Sukhu further stressed the need to reframe the Disaster Risk Index (DRI) developed by the 15th Finance Commission, noting that the uniform matrix did not account for hazards specific to the Himalayan region, such as landslides, snow avalanches, cloudbursts, forest fires, and Glacial Lake Outburst Floods (GLOFs). He urged the Commission to develop a separate DRI for hill states and allocate resources accordingly, ensuring sufficient funds for disaster relief.
He concluded by requesting sympathetic consideration of the state’s submissions during the finalisation of the 16th Finance Commission report to maintain sustainable state finances, assuring that Himachal Pradesh would continue to pursue fiscal prudence.
The Chief Minister’s Advisor was also present during the meeting. (ANI)
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