SHIMLA, Feb 8 : Expressing concern over the discontinuation of revenue deficit grant to Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu said that the abolition is not the government’s issue, but a matter of the rights of the people.
He said this on Sunday after a presentation by the state’s Department of Finance over Himachal Pradesh’s financial position and the effects of the abolition of the Revenue Deficit Grant (RDG).
Speaking after the presentation, Sukhu said the report of the 16th Finance Commission will have a long-term impact on Himachal Pradesh’s economy, including its upcoming budget.
To address the gap in the states’ revenue, the central government, on the recommendation of the Finance Commission, gives Revenue Deficit Grants to the eligible states as mandated under Article 275 of the Constitution.
“We are ready to go to Delhi and meet Prime Minister Narendra Modi 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.”
“We have also invited the BJP MLAs to attend this presentation, but unfortunately, they have not come,” Sukhu said.
Grants for 17 states have been scrapped, but Himachal Pradesh is the worst affected as 12.7 per cent of the budget comes from them, which is the second highest in the country, he said.
He also said that in the post-GST regime, the tax collection growth has come down to around eight per cent, which was 13 to 14 per cent before the implementation of GST.
“Himachal Pradesh, being a producer state, the implementation of GST has adversely impacted the economy as it is a consumer-based tax, and the state has only a population of 75 lakh,” the Congress leader said.
The GST regime also took away the competency of imposing taxes, he added.
He said, “We have to fight for the people of the state. The central government should at least ensure 50 per cent royalty on the power projects that have repaid their entire loan and give all those power projects back to the state that has completed 40 years of commissioning.” (PTI)
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