Unfazed by the current financial crisis, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu Talks Reform with HimbuMail in Shimla. He is treading the path that none of the past CMs have taken. Read here...
SHIMLA: In an exclusive talk with www.Himbumail.com’s Editor-in-Chief, Kuldeep Chauhan, Chief Minister Sukhvinder Singh Sukhu shared his confidence in bailing the state out of its present financial crisis.
He talks about his reformist agenda. Sukhu discussed various confidence-building measures he has initiated, all aimed at achieving his vision of a “self-reliant and green Himachal Pradesh”.
It is a Tall claim and a Himalayan task to achieve this mission in the given circumstances. Here are the highlights:
Kuldeep Chauhan: Chief Minister, Himachal Pradesh is facing a severe financial crisis. What measures is your government taking?
Chief Minister Sukhu: We're addressing the financial crisis through strict fiscal discipline and austerity measures. We're focusing on maximizing revenue from existing resources and reducing administrative expenses.
For instance, we've postponed salaries and allowances for ministers and Chief Parliamentary Secretaries to set an example and urged both BJP and Congress MLAs to follow the suit.
Also, we're advocating for more central funds from the 16th Finance Commission and seeking a green bonus to offset our debts.
In fact, we are correcting the financial mess created by the previous BJP government, We inherited mounting debt worth over 80000 Crore.
They did not pay even the arrears and DA of employees, who are back bone of government, worth over Rs 10,000 Crore piled up over the months. The same BJP has making noises and instigating employees.
Kuldeep Chauhan: You've also made personal sacrifices. Could you elaborate?
Chief Minister Sukhvinder Singh Sukhu: Yes, I have donated my salary and savings worth ₹55 lakhs and opted to forgo my salary and allowances. My advisor, Gokul Butail, has similarly foregone his salary for the entire year. These gestures are meant to inspire others to contribute to our efforts.
Kuldeep Chauhan: What about the state’s budget and expenditure challenges? You have top heavy teams of CPSs, Advisors, a full platoon of AGs, AAGs, and OSDs, Coordinators...?
Chief Minister Sukhvinder Singh Sukhu: Our budget is around ₹58, 400 crores, with significant 60 per cent consumed by non-planned expenditures like salaries and pensions and others.
You need an well oiled team of likeminded people to run the government. There is noting new in this.
We're implementing austerity measures in these areas and will strict to OPS. But we need to give social justice to the non-government sector of the state. The salaries and pensions, allowances also need to be rationalised.
We have asked all stakeholders to introspect in the interest of state and do their bit to render services to the state.
We are focusing on boosting revenue from power projects and new excise policies.
We’re also urging the 16th Finance Commission for increased funding for environmental initiatives.
Kuldeep Chauhan: Can you elaborate on the financial challenges related to GST compensation and revenue deficit grants?
Chief Minister Sukhu: GST compensation was halted in June 2022 when the BJP government was in power. Since then, our Revenue Deficit Grant (RDG) from the 15th Finance Commission has decreased significantly—from ₹10,000 crores in 2021 to just ₹3,000 crores.
As a result, we’ve had to reassess our spending. While we are committed to providing necessary freebies to the vulnerable section, not to the entire population, we must prioritize based on available resources.
Our policy changes are aimed at addressing these challenges. By 2027, we aim to achieve self-reliance, and by 2032, I am confident that Himachal Pradesh will be one of the richest states in India.
Kuldeep Chauhan: How do you plan to achieve self-reliance?
Chief Minister Sukhvinder Singh Sukhu: We’re targeting self-reliance by 2027. We've already generated ₹2200 crores in revenue and are pushing for a higher royalty on power projects, which could yield around ₹3,000 crores. But power companies have moved court and case is pending.
BJP regime committee scam as the excise policy was not transparent. BJP regime generated Rs 665 Crore in their tenure of five years, we have generated Rs 385 Crore in the first year through open auction policy.
With additional green bonuses and carbon credits, we aim to strengthen our financial position.
Kuldeep Chauhan: What about the state’s approach to environmental sustainability?
Chief Minister Sukhu: We aim to make Himachal Pradesh the first green state in India within three years. Our initiatives include green hydrogen projects and the development of green corridors.
We’re also seeking compensation from the central government for eco-services provided by our forests where we have banned green felling, which otherwise, if we harvest timber from them, could help clear our debts in two years time.
Kuldeep Chauhan: Natural Disasters have hit Himachal with a vengeance. What Government is doing to save human life and infrastructure?
CM Sukhu: We have faced the disasters boldly with the Center not compensating us for the losses that run in excess of over Rs 12000 crore last year. But we need not rely on funds from outside.
We need to build a disaster resilience strategy and mapping of the vulnerable areas prone to disasters. The HIMCOSTE is on the job to come out with scientific plan to forecast, prevent and mitigate disaster, at least minimizing loss to life, limb and property.
Kuldeep Chauhan: Moving to another topic, what can you tell us about Himachal’s progress in natural farming?
Chief Minister Sukhvinder Singh Sukhu: Himachal Pradesh is pioneering in natural farming.
We’ve introduced a Minimum Support Price (MSP) for natural farming products and are involving around 50,000 farmers through the Him-Unnati Yojana.
This initiative supports sustainable agriculture and ensures fair prices for chemical-free produce.
Kuldeep Chauhan: The Apple industry is the backbone of Himachal’s economy. What you have done for the industry?
CM Sukhu: We have introduced universal cartons in markets that have helped farmers getting good prices. It has strengthened marketing.
Next we are encourging farmers to give better and healthy fruit through Market Intervention Scheme and replacing gunny bags. It is not a good practice to transport apple in gunny bags. Consumers also get good apple products.
Kuldeep Chauhan: What is the vision behind the green hydrogen project?
Chief Minister Sukhu: Our vision is to establish Himachal Pradesh as a leader in green energy. The green hydrogen plant will not only meet the state's energy needs but also boost our economy and we will be first in India to do so.
We are also tapping Solar energy, providing 50 per cent subsides to the entrepreneurs.
This project will create jobs, improve health and environmental conditions, and serve as a model for sustainable development.
Kuldeep Chauhan: Can you tell us about your plans for promoting tourism and developing industries in Himachal Pradesh? You have cut power subsidies.
Chief Minister Sukhu: Tourism is a cornerstone of our economic strategy. We’re working to enhance tourism infrastructure, promote adventure and eco-tourism, and leverage our state’s natural beauty to attract more visitors.
We're also developing niche markets like wellness tourism and heritage tourism to diversify our offerings. Tourism provide more jobs and has a multiplier effect on economy.
To develop a hotel is not tourism, we are promoting Kangra as the tourism capital of Himachal. We are throwing the bars and cafes open 24x7.
For industries, we are implementing policies to attract investment and support local businesses. We will incentivise those industries which provide more jobs to Himachal's youth.
Our focus is on creating more jobs and will promote those industries which provide jobs to our youth. (Ends)
