Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Arvind Panagariya, Chairman of the 16th Finance Commission, on Tuesday and requested panel’s support to improve the state’s financial situation.
During the meeting, Sukhu asked for a separate ‘Green Fund’ with a fixed annual budget for hill states like Himachal, saying the matter had also been discussed with the Prime Minister earlier.
He said Himachal is managing its finances responsibly and is making good progress on sustainable development goals, but needs stronger financial backing, especially after the recent flashfloods that caused major damage across the state.
Sukhu pointed out that hill states face higher costs than others because of difficult terrain and limited ways to raise revenue. He urged the commission to consider this while making recommendations and suggested that the fund share for hill states should be at least double their population share.
He also called for the continuation of the Revenue Deficit Grant (RDG), noting that the sharp cut made by the 15th Finance Commission had pushed the state into a financial crisis.
The Chief Minister also shared suggestions related to disaster management, local body funding, relief from debt burden, and state-specific grants.
In response, Arvind Panagariya assured him of all possible support, according to a government statement.