CM Sukhu Pushes Finance Commission for Himachal’s Due Share and Separate Disaster Funds to mitigate losses worth Rs15000 Crore.
Shimla/New Delhi, Sept 11: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has once again pressed for the state’s “rightful due” as Himalayan state, urging the 16th Finance Commission to factor in its fragile ecology, disaster vulnerability and limited revenue sources while finalizing its report.
In his meeting with Commission Chairman Dr. Arvind Panagariya in New Delhi, Sukhu flagged the massive losses the state has suffered in the past three years—over ₹15,000 crore from back-to-back natural disasters that have killed hundreds and wrecked infrastructure.
Citing the Supreme Court’s July 2025 observation that “revenue cannot be earned at the cost of environment,” he warned that Himachal cannot be treated at par with the plains.
Sukhu demanded continuation of the Revenue Deficit Grant (RDG) for mountain states like Himachal, pegging the minimum requirement at ₹10,000 crore annually.
“With 67% of Himachal under forest cover and limited avenues of revenue generation, the state’s fiscal reality must be reflected in the Commission’s recommendations,” he said.
Pushing a larger ecological argument, the CM called for creation of a ₹50,000 crore annual ‘Green Fund’ to compensate Himalayan states for the ecological services they provide to the nation.
He has already raised the issue with the Prime Minister and written to him seeking central intervention.
The CM also tore into the Disaster Risk Index (DRI) used by the 15th Finance Commission, calling it “skewed and irrelevant” for mountain states.
“Landslides, avalanches, cloudbursts, forest fires and glacial lake outburst floods are frequent and devastating in the Himalayas, yet the DRI does not even account for them.
The result: Himachal was left with inadequate disaster relief despite being one of the worst-hit regions,” he said. Sukhu sought a separate DRI for Himalayan states and a dedicated disaster relief fund linked to it.
The CM reminded the Finance Commission that the state was not asking for charity but for structural recognition of its unique constraints and contributions.
“Himachal is carrying the burden of providing ecological security to the nation, but we are being starved of funds when disasters strike or when fiscal gaps arise,” he said.
Sukhu’s pitch comes at a time when the 16th Finance Commission is finalizing its recommendations.
Whether the body acknowledges these demands—or continues to treat Himachal as just another state—will decide the future of its fragile economy and disaster preparedness.
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