Shimla, March 3 – Himachal Pradesh is facing a fiscal gap of nearly 15 per cent following the withdrawal of the Revenue Deficit Grant (RDG), according to Naresh Chauhan, Principal Media Advisor to the Chief Minister, on Tuesday.
He stated that the withdrawal of the RDG directly affected almost every sector of the state, which has a population of around 7.5 million. He emphasized that for a small, predominantly hilly state like Himachal Pradesh, such financial assistance has been essential for sustaining development initiatives and public welfare programs.
He clarified that Article 275 (1) of the Constitution provides for financial assistance to special category states to enable them to achieve self-reliance and fiscal stability.
Referring to the recommendations of the 16th Finance Commission, Chauhan said that 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 emphasized that it would be practically impossible for the state to bridge a 15 per cent budgetary shortfall solely through its internal resources. He stressed that the matter transcends political considerations and is an issue concerning the state’s legitimate rights and long-term future.
He said that 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.
Regarding the protest during the AI Summit, Chauhan said that the youth were not opposing the summit per se; rather, they were expressing concerns about the potential implications of the proposed US-India trade agreement, particularly for the agriculture and horticulture sectors.
He stated that peaceful protest is 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 that conducting operations without a warrant and without prior intimation to the local police authorities was inconsistent with established protocol.
Regarding 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.