HP Minister slams Union Budget for no revenue deficit grant for state

HP Minister Vikramaditya Singh voiced disappointment with the Union Budget's lack of revenue deficit grants for the disaster-hit state, warning it will hamper development and urging the Centre to provide a special financial package.

Disappointment Over Lack of Financial Support

Himachal Pradesh Public Works Minister Vikramaditya Singh on Sunday expressed deep disappointment with the Union Budget presented on Sunday. He stated that the absence of a provision for revenue deficit grants for Himachal Pradesh, despite its being a disaster-affected, hilly state, is extremely concerning.

The minister pointed out that the revenue deficit grant received by Himachal Pradesh under the recommendations of the Finance Commission has been steadily decreasing in recent years and has now been practically eliminated, whereas, given the state's financial situation and the heavy losses incurred due to natural disasters, support should have been increased, not reduced.

Financial Strain and Impact on Development

Vikramaditya Singh said that Himachal Pradesh's economy is already under severe strain, with heavy expenditure on salaries, pensions, interest payments, and debt servicing, coupled with a limited tax base and frequent natural disasters, further exacerbating the state's financial challenges.

In such a situation, the absence of revenue deficit grants and a special package will directly impact crucial infrastructure projects such as roads, bridges, drinking water, irrigation, and reconstruction, and will adversely affect the pace of development.

Call for Central Government Reconsideration

"This issue is not about any single party, that is, Congress or the BJP, but is related to the long-term interests of Himachal Pradesh and its people," the minister said.

"In keeping with the spirit of the federal structure, it is essential that the central government recognise the specific circumstances of hilly and disaster-affected states and provide them with adequate financial assistance, setting aside political considerations," he added.

The Minister urged the central government to immediately reconsider the restoration of revenue deficit grants for Himachal Pradesh and provide a special financial package for disaster rehabilitation and infrastructure development, so that the state can effectively fulfil its responsibilities of reconstruction and development, and the economy of the hill state can be placed on a stable and strong foundation.

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