New Delhi, Oct 29 Himachal Pradesh Chief Minister Sukhvinder Sukhu on Wednesday met Union Finance Minister Nirmala Sitharaman here and requested her to adopt a liberal approach towards providing financial assistance and grants to the state.
Considering the current financial situation of the state, the Chief Minister urged to increase in the additional borrowing limit by 2 per cent for the remaining period of this fiscal.
The Chief Minister highlighted that despite the state government's efforts to increase revenue, the state's financial health has been severely impacted due to regular reductions in revenue deficit grants and losses incurred due to natural disasters over the past three years.
Stressing the need for financial support, CM Sukhu pointed out that the state's revenue deficit grant has decreased significantly from Rs 10,249 crore in 2020-21 to Rs 3,257 crore in 2025-26 under the 15th Finance Commission's period.
He also mentioned the loss of around Rs 18,000 crore due to natural disasters during the past three years, resulting in the death of 1,321 people and damage to resources.
The Chief Minister said the recent rationalisation of Goods and Services Tax (GST) rates has adversely affected the financial position of the state due to the reduction in the tax base.
In view of the difficult circumstances the state is facing, adequate liberal assistance should be provided, he reiterated. CM Sukhu also apprised the Finance Minister of the measures being taken by the state government to improve its financial situation through its limited resources.
The Union Finance Minister assured the Chief Minister that the state’s demands would be considered sympathetically. She also assured that additional assistance would be provided under Special Central Assistance, and the state would be considered for additional approvals, especially for the health sector projects.
Rajya Sabha MP and state Congress in-charge Rajni Patil were among those present at the meeting.
--IANS
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