Shimla, Feb 8 (IANS) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Sunday said that the report of the 16th Finance Commission would have a long-term impact on the state’s economy, including the upcoming Budget for 2026-27.

He made this comment after the presentation on the state’s financial position and the effects of the abolition of the Revenue Deficit Grant (RDG) by the Finance Department.

“Abolition of RDG is not the issue of a government, but it is a matter of the rights of the people of the state. We are ready to go to Delhi and meet the Prime Minister along with BJP MPs and MLAs to take up this issue. I think once the provision of RDG is gone, it will be difficult to reclaim the rights of the people,” he said.

“We have also invited the BJP MLAs to attend this presentation, but unfortunately, they have not come. The RDG for 17 states have been scrapped, but Himachal Pradesh is worst affected as 12.7 per cent of the budget comes from RDG, which is the second highest in the country.” The Chief Minister said in the post-GST regime, the tax collection growth has come down to around 8 per cent, which was 13 to 14 per cent before the implementation of the GST (Goods and Services Tax).

“Being Himachal Pradesh a producer state, the implementation of GST has adversely impacted the economy of the state as it is a consumer-based tax and Himachal Pradesh has only a population of Rs 75 lakh.” The Chief Minister said the competency of imposing taxes has also been taken away after the GST regime.

“Together we have to fight for the people of the state,” he said, emphasising the Central government should at least ensure 50 per cent royalty on the power projects and hand over all power projects back to the state that have completed 40 years of commissioning.

He said Rs 4,500 crore of Bhakra Beas Management Board (BBMB) arrears have not been given to the state since 2012, despite the Supreme Court verdict. “We are also fighting a legal battle to get back the Shanan Power Project, whose lease period is over with the Punjab government.”

CM Sukhu said that the government remained committed to further achieving the goal of resource mobilisation. The government has earned a revenue of Rs 26,683 crore from its own resources, but this income generation is not enough, “as we just have river waters and forests as a source of revenue apart from the tourism sector”.

“I assure the people of the state that we will implement every welfare scheme on the ground, we will increase the resources of the state, and we will continue to fight for our legitimate rights,” the Chief Minister added.

–IANS

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