Himachal ministers hope for justice from Union Budget amid fund cuts

Three Himachal Pradesh ministers expressed deep concern over the Union Budget, seeking financial justice for the state. They flagged reduced central aid, MGNREGA cuts, pending disaster relief, and the impact of FTAs on apple growers.

Three ministers of the Himachal Pradesh government, Revenue, Horticulture and Tribal Development Minister Jagat Singh Negi, Education Minister Rohit Thakur and Rural Development Minister Anirudh Singh, on Thursday expressed concern over the Union Budget, while hoping that the Centre would address the financial challenges faced by the hill state.

Speaking to ANI, the ministers said Himachal Pradesh expects justice from the Union Budget, particularly in view of reduced central assistance, cuts in MGNREGA allocation, loss due to natural disasters and the adverse impact of reduced import duty on apples under recent Free Trade Agreements (FTAs).

Ministers Detail Financial Grievances

Jagat Singh Negi: MGNREGA, Disaster Funds and GST Cuts

Speaking to ANI, Revenue, Horticulture, and Tribal Development Minister Jagat Singh Negi raised MGNREGA, disaster relief, and funding issues. He added expectations from the Union Budget remain, but optimism is limited due to the Centre's alleged neglect of the state.

"We always keep expectations from the Union Budget, but this time there is not much hope because the Centre has diluted schemes like MGNREGA. Earlier, it was a simple and effective source of employment for poor people, but now it has been made more complicated, reducing employment opportunities," Negi said.

He alleged that Himachal Pradesh has not received adequate financial support even after severe natural disasters. "The post-disaster need assessment funds of 2023 have not been fully released. This year, around Rs 2,500-2,600 crore was talked about, of which Himachal's share of nearly Rs 500 crore has also not fully come," he said.

Negi further said that in 2025, losses of over Rs 6,000 crore were assessed due to natural calamities, but only Rs 1,500 crore was announced by Prime Minister Narendra Modi, which has not yet been received.

"There have been cuts in GST compensation and revenue deficit grants. After we discussed the Old Pension Scheme, even our revenue deficit grant was restricted," Negi added. He said the Chief Minister has repeatedly raised these issues with the Finance Ministry and officials in Delhi. "Now we will see on February 1 which way the camel sits and what kind of budget we get," Negi remarked.

Rohit Thakur: Shrinking Fiscal Space and Apple Economy

State Education Minister Rohit Thakur highlighted the shrinking fiscal space in Himachal Pradesh, noting the state's limited economic resources. Speaking to ANI, Thakur said, Himachal Pradesh expects fairness in the Union Budget, whether through the 16th Finance Commission or direct budgetary support.

"Our hill state has limited economic resources. If you compare 2021-22 with the present financial year, there is a difference of nearly Rs 11,000 crore in just one year," Thakur said.

He alleged that when the BJP was in power in the state, Himachal received higher central assistance through various grants and borrowing limits. "At that time, inter-state grants and loan limits were available, but now there is a huge shortfall," he said.

Rohit Thakur expressed serious concern about the recent Foreign Trade Agreements that reduced import duties on apples. "The reduction of import duty under FTAs first with New Zealand and now with the European Union to 20 per cent will seriously impact Himachal's apple economy and apple growers," he said.

He said apple cultivation affects not just Himachal Pradesh but the entire Himalayan region. "Sixty to seventy per cent of people in rural areas are directly or indirectly dependent on horticulture and agriculture," he added.

Thakur also highlighted cuts in the Market Intervention Scheme (MIS). "Earlier, the Centre used to contribute 50 per cent under MIS, but now the amount, which earlier stood at around Rs 4,000 crore, has been reduced to a token amount of just Rs 1 lakh," he said. He demanded restoration of the 50:50 Centre-State sharing pattern and special protection for apples under FTAs. "Apple should be treated as a special category, import duties should be increased, and incentives should be given to sectors like horticulture, power and tourism," Thakur said.

Anirudh Singh: Concerns Over MGNREGA Cuts

Rural Development Minister Anirudh Singh, while speaking to ANI, said the state still hopes that the Union Budget will address Himachal's concerns, particularly regarding MGNREGA.

"We always keep hope. This budget will show whether the Centre stands up to our expectations or not," Anirudh Singh said.

He pointed out that MGNREGA allocations have been consistently reduced. "Last year, Rs 12,000 crore was cut, this year Rs 14,000 crore was reduced, and now it seems the scheme has almost been finished," Anirudh Singh alleged.

The ministers said Himachal Pradesh looks to the Union Budget for financial justice, restoration of central support, protection of apple growers and revival of employment schemes, warning that continued neglect would further strain the state's fragile hill economy. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)