Himachal Pradesh Deputy CM Mukesh Agnihotri criticised the BJP over the discontinued Revenue Deficit Grant, stating the state cabinet will meet PM Modi to seek its restoration and citing a severe financial crisis facing the state.
Himachal Pradesh Deputy Chief Minister Mukesh Agnihotri on Tuesday criticised the Leader of Opposition and the BJP over the Revenue Deficit Grant (RDG), alleging that the opposition has no clarity on whether it supports the restoration of the grant to the state.
Speaking to ANI amid the Assembly session in Shimla, Agnihotri said the state Cabinet, under the leadership of Chief Minister Sukhvinder Singh Sukhu, will meet Prime Minister Narendra Modi to seek restoration of the Revenue Deficit Grant. He said the time to meet the PM is yet to be confirmed.
“We will meet the Prime Minister under the leadership of the Chief Minister, and we hope that Narendra Modi will restore Himachal Pradesh’s Revenue Deficit Grant. We shall take up our demand and issues,” Agnihotri said.
Agnihotri Cites Constitutional Arrangements
Referring to constitutional arrangements, the Deputy CM said that when the Constitution was framed under the leadership of Dr BR Ambedkar, provisions were made to safeguard the financial rights of states.
“I would like to say that when Babasaheb Ambedkar and his team framed the Constitution, it was done with far-sighted thinking about how to protect the rights of states. India’s financial structure is federal in nature. If states are deprived of their rights, it is a serious blow to the federal system,” he said.
Agnihotri cited Articles 275(1) and 282 of the Constitution and stated that states are entitled to funds from the Consolidated Fund of India. “Now attempts are being made to deprive states of their rightful share from the Consolidated Fund. The Centre is retaining a larger portion, and the states are getting less. This is a very serious issue,” he said.
Financial Supports Discontinued
The Deputy CM said two major financial supports for Himachal, GST compensation and the Revenue Deficit Grant, have been discontinued.
“One of the key supports for running Himachal’s government was GST compensation. That was stopped in 2022. Previous governments continued to receive it, so their tenure was relatively smooth. But since our government came to power, GST compensation has been discontinued,” he said.
He added that smaller and less populous states, such as Himachal Pradesh, suffer disproportionately under the GST regime. “Where goods are sold, GST revenue accrues there. We are not receiving adequate GST revenue. The biggest loss to Himachal has been due to the stoppage of GST compensation,” he said.
On the RDG, Agnihotri alleged that the grant was halted without proper reasoning. “Without any alarm, without any notice, without any clear analysis or logic in the Finance Commission report, the Revenue Deficit Grant has been blocked. Himachal Pradesh is facing a loss of around Rs 10,000 crore annually,” he said.
State’s Fiscal Constraints
Highlighting the state’s fiscal constraints, the Deputy CM said that Himachal Pradesh had never been considered a financially self-sufficient state. “When Himachal was formed, it was clear that it was not a financially viable state on its own and would require Central assistance. Since Independence, the Centre has supported Himachal,” he said.
He claimed the state’s own revenue stands at around Rs 18,000 crore, while fixed liabilities are approximately Rs 42,000 crore annually.
“If our borrowing limit is Rs 10,000 crore and we receive around Rs 13,000-14,000 crore as our share in central taxes, how will the state function? How will we pay salaries, pensions, and meet our responsibilities?” he asked.
Agnihotri said Himachal’s dependence on the Revenue Deficit Grant is significant. “There are states that did not require RDG as their dependence was barely 1 to 1.5 per cent. Himachal’s dependence is about 13 per cent. Nagaland’s is around 17 per cent. We need this grant to function,” he said.
The Deputy CM urged early intervention by the Prime Minister. “Before March, the Prime Minister should intervene and restore the Revenue Deficit Grant. The Prime Minister has represented Himachal and understands its financial situation. Restoration of RDG is essential so that we can pay salaries, pensions and discharge the state’s responsibilities,” he said.
Criticism of Opposition’s Stance
Agnihotri also criticised the Opposition’s stance, alleging that BJP leaders are reluctant to allow discussion on the issue in the Assembly. “The Leader of Opposition says the Finance Commission had already alerted the state. But the BJP does not want a discussion on RDG. Are they in favour of restoration or not? The people of Himachal deserve clarity,” he said.
Referring to political remarks from the Opposition, he added, “When RDG was stopped, the Leader of the Opposition even said people should be ready for elections. This raises questions about their intent.”
Agnihotri further alleged that the state has not received adequate central assistance for infrastructure, including airports. “If the British had not laid the railway to Shimla, it would not have reached here even today. Similarly, other states have been given greenfield airports. Not a single airport in Himachal has received financial support from the Centre,” he claimed.
Reiterating the government’s position, he said the state Assembly would pass a resolution urging restoration of RDG and enhanced financial assistance. “This is not about politics. Himachal cannot be left stranded. We are only demanding what is constitutionally due to the state,” Agnihotri said.
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)