Strengthening Himachal Pradesh's Fiscal Framework: CM Seeks Support

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met with the 16th Finance Commission chairman, Arvind Panagariya, to seek support in strengthening the state's financial situation. Sukhu requested the creation of a 'Green Fund' for hill states and highlighted the fiscal challenges exacerbated by recent flash floods.

Chief Minister of Himachal Pradesh, Sukhvinder Singh Sukhu, engaged with Arvind Panagariya, chairman of the 16th Finance Commission, on Tuesday. Sukhu emphasized the importance of the panel's support to bolster the state's fiscal framework amidst economic challenges.

In a strategic move, Sukhu advocated for a separate 'Green Fund' with dedicated allocation for hill states, discussing the matter previously with the prime minister. The state government statement highlighted the financial hurdles intensified by flash floods and emphasized fiscal prudence in achieving sustainable development goals.

Sukhu urged the Finance Commission to consider the unique challenges of hill states, where expenditure significantly outpaces that of other regions. He called for continued Revenue Deficit Grants, citing topographical and revenue-raising limitations, amid challenges posed by the tapering of grants by the previous commission. Panagariya assured comprehensive support to tackle these issues.

(With inputs from agencies.)