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Himachal Pradesh's CM asked India's finance minister for special aid to cover its revenue shortfall, warning of fiscal harm from ending central grants.
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman on March 2, 2026, urging special central assistance to address the state’s 2026-27 revenue deficit, warning that ending the Revenue Deficit Grant—currently 12.7% of state revenue—would severely impact fiscal stability.
He argued the uniform discontinuation of RDG undermines cooperative federalism and fails to account for the unique challenges of hill states, citing constitutional provisions and the Finance Commission’s oversight of regional disparities.
Despite fiscal reforms and annual cess collections of about ₹600 crore, revenue shortfalls due to GST and limited fiscal capacity persist.
Sukhu requested a committee to assess hill states’ economic needs, which Sitharaman said would be considered sympathetically.
El CM de Himachal Pradesh pidió al ministro de finanzas de la India una ayuda especial para cubrir su déficit de ingresos, advirtiendo sobre el daño fiscal de terminar con las subvenciones centrales.