Sukhu advocates Chairman 16th FC for continuation of Revenue Deficit Grant
Urges creation of separate ‘Green Fund’ with earmarked annual allocation for hill states.
Chief Minister Thakur Sukhvinder Singh Sukhu met Dr Arvind Panagariya, Chairman 16th Finance Commission at New Delhi today and sought co-operation of the Finance Commission for strengthening the financial condition of the state. He said that state government was following the path of fiscal prudence and was one of the best performing states in the country on various parameters including sustainable development goals. He urged the Commission to support the state in its recommendations keeping in view the financial condition of the state.
Chief Minister said that hill states incur a much higher expenditure as compared to other states. He said that devolution to a hill state should be at least twice than their share of population.
He requested for continuation of Revenue Deficit Grant (RDG) keeping in view topographical disadvantages and limited scope for raising revenue. He added that state is facing a financial crisis because of steep tapering of RDG by the 15th Finance Commission.
He also requested for creation of a separate ‘Green Fund’ with earmark annual allocation for hill states. He added that this issue was discussed with the Prime Minister also.
Chief Minister also apprised him about the suggestions made by the state for disaster management, relief from debt trap, grant to local bodies and state specific grants. He urged for accepting the suggestions as recommended.
Dr Arvind Panagariya assured of all possible assistance to the state.
Chief Secretary Prabodh Saxena and Principal Advisor to CM Ram Subhag Singh accompanied the Chief Minister.
