Chief Minister Thakur Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday 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 an increase in the additional borrowing limit of the state by 2 per cent for the remaining period of the financial year 2025–26.
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, 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 precious lives 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.
Sukhu also apprised the Finance Minister of the measures being taken by the state government to improve its financial situation through its minimal 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 that the state would be considered for additional approvals, especially for health sector projects.
Rajya Sabha MP and Himachal Congress In-charge Rajni Patil, and Chief Minister's Principal Advisor Ram Subhag Singh, Principal Secretary Devesh Kumar, Principal Resident Commissioner Ajay Kumar and senior officers of the Union Finance Ministry were also present on this occasion.
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