Himachal Pradesh Chief Minister Sukhu Requests Additional Borrowing from Finance Minister Sitharaman for 2025-26

Chief Minister Sukhvinder Singh Sukhu has sought permission from Union Finance Minister Nirmala Sitharaman for Himachal Pradesh to borrow an extra two per cent of its Gross State Domestic Product (GSDP) in 2025-26. Sukhu, during his meeting with Sitharaman in New Delhi, highlighted the state's financial challenges and the need for additional borrowing to meet budgetary obligations.

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The chief minister pointed out that despite efforts to mobilise additional resources, the measures are inadequate for fulfilling the financial requirements for 2025-26. He emphasised the need for more resources to develop infrastructure, which is costly due to challenging topographical and weather conditions. A statement released here detailed these concerns.

Revenue Deficit Grants and External Assistance

Sukhu also addressed the issue of reduced Revenue Deficit Grants, which has impacted the state's finances. He urged Sitharaman to reconsider the restrictions imposed by the Department of Expenditure on Himachal Pradesh's access to external assistance. According to Sukhu, these limitations have negatively affected the state's financial health and stalled several projects.

Additionally, Sukhu requested consideration for funding a reconstruction and rehabilitation proposal from Himachal Pradesh. He suggested seeking multilateral funding from the World Bank under a new window, which would exceed the ministry's current ceiling. This proposal aims to secure necessary funds beyond existing limits.

Sympathetic Consideration Assured

The finance minister assured Sukhu that his requests would receive sympathetic consideration. This assurance offers some hope for addressing the state's financial challenges and advancing stalled projects. The statement concluded with this note of assurance from Sitharaman.

Himachal Pradesh faces significant financial hurdles due to its unique geographical challenges. The state government is actively seeking solutions to ensure it can meet its budgetary commitments while continuing infrastructure development. The outcome of these discussions with the finance minister will be crucial for the state's future planning and development efforts.