HP seeks Rs 50,000 Cr. central package to compensate RDG Losses
New Delhi, June 11
Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu on Thursday strongly pitched for enhanced financial assistance to hill states, urging the Centre to increase the special grant proposed after the discontinuation of Revenue Deficit Grant (RDG) from ₹25,000 crore to ₹50,000 crore.
Addressing the 11th Governing Council Meeting of NITI Aayog chaired by Prime Minister Narendra Modi in New Delhi, Sukhu said the withdrawal of RDG had dealt a severe blow to the finances of Himachal Pradesh and other hill states. He argued that the Rs 25,000 crore package proposed for all hill states was inadequate to compensate for the substantial revenue losses suffered by them.
The Chief Minister called for the constitution of a high-level committee to assess the cumulative financial impact on hill states arising from the discontinuation of RDG, recurring natural disasters, inadequate free power benefits from hydroelectric projects and revenue losses under the GST regime. He said the committee should submit a comprehensive report to the Government of India to ensure that states receive their rightful share of resources.
Sukhu highlighted that Himachal Pradesh had suffered revenue losses of around Rs 25,000 crore over the past eight years due to the GST regime. He also pointed out that the state was yet to receive ₹1,500 crore in special assistance announced by the Centre following natural disasters and Rs 7,000 crore in arrears from BBMB.
Describing Himachal Pradesh as the country’s “green frontier”, the Chief Minister said the state provides ecological services worth nearly Rs 90,000 crore annually but receives little compensation for its contribution to environmental conservation. He urged the Centre to extend special support to ensure sustainable development and inclusive growth in the hill state.
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