Himachal 'Confronting' Fiscal Gap Of 15 Pc After Withdrawal Of Revenue Deficit Grant ​

(MENAFN- IANS) Shimla, March 3 (IANS) Himachal Pradesh is confronting a fiscal gap of nearly 15 per cent following the withdrawal of the Revenue Deficit Grant (RDG), said Naresh Chauhan, Principal Media Advisor to the Chief Minister, on Tuesday. ​

He said the RDG withdrawal directly affected approximately every section of the state, having a population of around 7.5 million”. He said that, for a small and predominantly hilly state like Himachal Pradesh, such financial assistance has been indispensable for sustaining developmental initiatives and public welfare programmes.​

He clarified that Article 275 (1) of the Constitution provides for financial assistance to special category states to enable them to attain self-reliance and fiscal stability. ​

Referring to the recommendations of the 16th Finance Commission, Chauhan said the omission of this crucial provision could result in an annual loss of nearly Rs 10,000 crore to the state, amounting to approximately Rs 50,000 crore over five years. ​

He underlined that it would be practically unfeasible for the state to bridge a 15 per cent budgetary shortfall solely through its internal resources. Stressing that the matter transcends political considerations, he described it as an issue concerning the state's legitimate rights and long-term future. ​

He said Chief Minister Sukhvinder Sukhu has held detailed discussions with the Union Finance Minister, presenting comprehensive facts, constitutional provisions, and reasoned arguments to safeguard the state's interests. ​

Chauhan appealed to the Opposition parties to rise above partisan politics and unite in the larger interest of Himachal Pradesh. ​

On the protest during the AI Summit, Chauhan said the youth were not opposing the summit per se; rather, they were expressing apprehensions about the potential implications of the proposed US-India trade agreement, particularly for the agriculture and horticulture sectors. ​

He said peaceful protest was a fundamental democratic right and should neither be branded as anti-national nor construed as detrimental to the state's image. ​

Commenting on the action undertaken by the Delhi Police in Himachal Pradesh, Chauhan said conducting operations without a warrant and without prior intimation to the local police authorities was inconsistent with established protocol. ​

On the forthcoming Rajya Sabha elections, Chauhan stated that the numerical strength in the state Assembly favoured the Congress, and that the party's candidate would be decided by the party's High Command. ​

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