Himachal Pradesh Seeks Financial Flexibility Amid Challenging Conditions

Chief Minister Sukhvinder Singh Sukhu has appealed to Union Finance Minister Nirmala Sitharaman for an additional borrowing allowance for Himachal Pradesh. He highlighted the state's financial challenges and infrastructure needs and requested external assistance and funding for reconstruction projects.

Chief Minister Sukhvinder Singh Sukhu has approached Union Finance Minister Nirmala Sitharaman with a request to permit Himachal Pradesh an additional borrowing capacity of two percent of its Gross State Domestic Product (GSDP) for the fiscal year 2025-26.

During their meeting in New Delhi, Sukhu addressed concerns over the reduction of Revenue Deficit Grants and emphasized the state's ongoing efforts for resource mobilization. Despite these efforts, the chief minister expressed that they fall short of bridging the financial gap for the upcoming budget year.

Sukhu underscored the need for substantial financial resources to support infrastructure projects, many of which are delayed due to challenging terrain and climatic conditions. He urged the finance minister to reconsider the borrowing limits set by the Department of Expenditure, which have hindered the state's access to external aid and stalled numerous initiatives.

(With inputs from agencies.)