Chief Minister Sukhwinder Singh Sukhu presiding over the Himachal Pradesh Cabinet meeting.
State Bureau, Shimla. The Sukhu government has decided to launch a political battle as well as approach the court against the decision to stop the Revenue Deficit Grant (RDG) received by Himachal Pradesh. Chief Minister Sukhwinder Singh Sukhu has said that the abolition of RDC will have a serious impact on the economy of the state and it will have a direct impact on development works, salary of employees, pension and various welfare schemes. The effects of abolition of RDG were discussed in a detailed presentation given by the Finance Department after the cabinet meeting held at the Secretariat on Friday under the chairmanship of the Chief Minister.
Government faces loss of Rs 6 thousand crores
According to the Finance Department, the state government requires about Rs 48 thousand crore to meet its annual expenses, whereas the government is able to raise only about Rs 42 thousand crore from its own resources. In such a situation, the state is facing a loss of about Rs 6 thousand crores every year.
Himachal's development will be affected
Chief Minister Sukhu said that the closure of RDG will have a direct and negative impact on the development of Himachal, however, he assured the people of the state that the government will not allow the development works to come to a halt. He said that the Himachal government will fight for the interests of the state with full strength.
Everyone should advocate for the interests of Himachal
The Chief Minister also appealed to the opposition for cooperation on this issue and said that everyone should rise above political differences and advocate the interests of Himachal before the Prime Minister. He said that opposition MLAs were also invited for the presentation of the Finance Department, but it was unfortunate that they did not attend it.
Social security schemes and subsidies will also be affected
The closure of RDG will have a serious impact on the economic condition of Himachal Pradesh. This is not just an issue of the government but of every citizen of the state. We will raise this strongly at both political and legal levels and will not allow any compromise with the development of the state. The abolition of RDG may also impact development projects, social security schemes and subsidies in future, for which concrete lobbying will be done before the Central Government.
Center should ensure royalty from power projects
He said that the Central Government should ensure at least 50 per cent royalty on power projects which have fully repaid the loan, besides ensuring return of the same to the state for projects which have completed 40 years of operation.
Payment of dues from BBMB
The Chief Minister said that since 2012 till now the state has not received the outstanding amount of Rs 4500 crore of Bhakra-Beas Management Board (BBMB), even though the Supreme Court's decision in this regard has also come. He said that the lease period of Shanan Power Project has expired and the state is fighting a legal battle to take it back from the Punjab government.
What is the budget and deficit?
Principal Secretary, Finance Department, Devesh Kumar said that the state's income for the year 2021 to 2026 was estimated at Rs 90,760 crore and expenditure at Rs 1,70,930 crore. The deficit of Rs 80,170 crore was met by Rs 35,064 crore tax devolution, Rs 37,199 crore RDG and Rs 9,714 crore other grants. The 16th Finance Commission did not assess the income and expenditure of any state separately.
Also read: 'Revenue deficit grant was temporary', advises Union Minister Shekhawat; States like Himachal should adopt financial discipline
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