Premium

Make revenue deficit grant at minimum level of Rs 10k cr annually: Sukhu to Sitharaman

Seeks urgent intervention against rising influx of foreign apples, inclusion of apples under a ‘Special Category’, an import ban during the peak production season and quantitative restrictions on imports

Sukhu also apprised Sitharaman about the revised formula proposed by the state for horizontal devolution for increasing the weightage for the criteria of Forest and Ecology.Sukhu also apprised Sitharaman about the revised formula proposed by the state for horizontal devolution for increasing the weightage for the criteria of Forest and Ecology. (Image: @SukhuSukhvinder/X)

Chief Minister Sukhvinder Singh Sukhu on Thursday apprised Union Finance Minister Nirmala Sitharaman about the memorandum and additional memorandum submitted to the 16th Finance Commission, urging her to make the Revenue Deficit Grant (RDG) at a minimum level of Rs 10,000 crore annually for Himachal Pradesh.

Sukhu, who called on Sitharaman at her office in New Delhi, stressed a realistic assessment of the RDG of States revenues and expenditure projections during the award period of the 16th Finance Commission.

The central government provides Revenue Deficit Grants, a financial aid, to the states under Article 275 of the Constitution, as per the recommendations of the Finance Commission, to meet the gap in their revenue accounts after tax devolution, ensuring states can meet essential spending needs like welfare and administration.

Discussing fiscal issues of the state, whose debt has increased over Rs 1 lakh crore, the chief minister sought the Centre’s support to strengthen the financial condition of Himachal Pradesh. Sukhu strongly pleaded for creating a separate “Green Fund”, with an earmarked annual allocation of Rs 50,000 crore for hill states, with them being the Green Frontiers and Lungs of North India, keeping in view the ecological services being provided by them.

Sukhu also apprised Sitharaman about the revised formula proposed by the state for horizontal devolution for increasing the weightage for the criteria of Forest and Ecology. He said snow-covered-cum-cold desert areas above tree lines should be included, along with very dense forests and moderately dense forest areas, for their symbiotic relationship.

Sukhu stressed reframing the Disaster Risk Index developed by the 15th Finance Commission, pleading that the Himalayan regions cannot be equated with other areas of the country. “The state was deprived of adequate resources for its disaster relief despite facing heavy natural disasters.”

He urged for a separate DRI for hill states, considering their unique indicators and demanded a separate allocation for hill states.

Story continues below this ad

The chief minister requested Sitharaman to extend support to Himachal by allowing additional borrowing of two per cent of the Gross State Domestic Product (GSDP), stating “steep reduction in the RDG over the past few years has severely constrained the fiscal space available to the state”.

Takes up apple growers’ issues

Taking up the issues of apple growers with the Union Finance Minister, Sukhu urged her to impose a 100 per cent import duty on apples and enforce a seasonal ban on imports to protect Himachal’s apple economy.

Seeking urgent intervention against the rising influx of foreign apples, Sukhu demanded inclusion of apples under a ‘Special Category’, an import ban during the peak production season from July to November, and quantitative restrictions on imports.

The chief minister flagged concerns over duty concessions to apples from New Zealand, stating, “It hurts local orchardists.”

Story continues below this ad

Sukhu questioned the BJP’s silence on the issue and urged the Opposition party in Himachal to raise growers’ concerns at the Centre.

Stay updated with the latest - Click here to follow us on Instagram

Latest Comment
Post Comment
Read Comments
Advertisement
Loading Taboola...
Advertisement