HP CM Sukhvinder Singh Sukhu highlighted the state's growing fiscal challenges to the Centre, citing revenue losses from GST and reduced grants. He argued hill states like Himachal cannot be assessed on the same parameters as larger states.
HP Flags Fiscal Woes, Reduced Grants
Speaking to the media in Shimla, Sukhu said he had raised these concerns before the 16th Finance Commission and senior Union ministers, stressing that Himachal Pradesh could not be assessed on the same financial parameters as larger, consumption-driven states.The Chief Minister said revenue deficit grants (RDG) to the state had been consistently reduced over the years, adding pressure on the state exchequer. He pointed out that while the 15th Finance Commission had approved substantial RDG, the allocation had gradually declined, forcing the state to adopt strict fiscal discipline.Impact of GST on State Revenue
Referring to the Goods and Services Tax regime, Sukhu said GST had caused long-term revenue losses to Himachal Pradesh and other hill states. "GST is consumer-based. We are a production state, but the benefit goes to states with higher consumption and population. Himachal will never get the real benefit of GST under the present system," he said.He added that prior to GST, industrial hubs such as Baddi generated significant revenue through VAT and excise duties, which was later partially compensated only for a limited period. The reduction in GST rates, particularly for the cement industry, had further reduced the state's earnings, he said.Concerns Over Disaster Relief Costs
Sukhu also raised concerns over disaster-related expenditure, stating that the cost of restoring infrastructure in hilly terrain is far higher than in the plains and should be factored into national disaster assessment parameters.Stance on Old Pension Scheme
On pension reforms, the Chief Minister reiterated that the Old Pension Scheme was restored with a long-term perspective and not for political considerations, adding that the state had taken the decision despite fiscal constraints.Other Key Issues and Future Plans
He said he had also discussed issues related to apple imports with Union Commerce Minister Piyush Goyal and hydropower royalty payments with the Union Power Minister, asserting that the state government would continue to pursue all pending matters in the interest of Himachal Pradesh.Sukhu also said that the state cabinet reshuffle is also on cards soon and new schemes would be launched soon. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)Add Asianet Newsable as a Preferred Source
