New Delhi/Shimla: Himachal Pradesh’s hopes are riding high as it prepares to pitch its demands for a fairer share of devolution funds at tomorrow’s Finance Commissions Conclave in Delhi.
The state government, reeling under recent cuts in Revenue Deficit Grants (RDG) and still awaiting decisions on its water cess and green bonus proposals, is set to submit its fresh recommendations, seeking much-needed relief and resources.
The one-day event, themed “Devolution to Development,” is organized by the Ministry of Panchayati Raj and will be held at Vigyan Bhawan, with Dr. Arvind Panagariya, the 16th Finance Commission’s chairman, at the helm.
Leaders from the Finance Ministry, Housing & Urban Affairs, and Panchayati Raj are slated to join, along with finance heavyweights and state representatives, as they dig into the challenges of effective devolution to Panchayati Raj Institutions (PRIs).
Himachal is expected to highlight its struggle for financial stability as part of a bigger call for the center to step up support for states wrestling with resource allocation for local bodies.
Officials say Himachal’s delegation is keen to press for progress on its long-pending water cess and green bonus proposals—key revenue streams it believes are crucial for balancing its budget and achieving sustainable development.
Spotlight on Financial Gaps and Grant Challenges
The conclave agenda includes four key sessions tackling some of the most pressing issues in local financial governance.
Opening addresses by top officials from the Ministries of Panchayati Raj and Housing & Urban Affairs, followed by a keynote from Dr. Panagariya, will set the stage.
The first session dives into “Local Body Grants,” zooming in on the tightrope between “Tied” and “Untied” funds, transparency of online accounts, and the hurdles in grant utilization.
Himachal’s representatives, alongside eight other State Finance Commissions (SFCs), will get their turn in Session II, which deals with Panchayat finances.
It’s a chance to lay bare the crunch in rural funds, stressing the need for fairer devolution and new revenue sources for panchayats that are often starved for funds yet crucial to local governance.
A Call for Action at the Grassroots
In its closing, the Conclave aims to drive home the importance of timely, accountable SFC recommendations and enhanced collaboration among stakeholders.
“This Conclave is about building a stronger, responsive framework that empowers local governance,” said a senior official.
With tomorrow’s meet-up, Himachal Pradesh’s hopes hinge on whether the Centre will hear its plea for the devolution boost it desperately needs.
