The Chairman of 16th Finance Commission visiting the state , Arvind Panagariya has not committed on allocation for special funds for disaster relief or for a special package.
He said, “It would be premature and inappropriate to comment on the parameters that would be adopted for recommending an allocation of grants as Himachal’s needs cannot be viewed in isolation”.
Chief Minister Sukhvinder Singh Sukhu, representing the case for special grant for the state in view of special circumstances like unprecedented loss from the natural calamity and various other factors.
The cash strapped state government is facing an acute financial situation with the whopping loan of over Rs 80000 crore , moreover the state government requires huge funds for restoration for reconstruction for state government properties of over Rs 10000 crore .
Panangariya said, “Detailed discussions were held with the CM and other stakeholders but total tax revenues of the Centre will be shared with all states including Himachal Pradesh.”
While raising various issues of the state’s interest the CM had urged the Finance Commission to provide liberal financial assistance to the state for its contributions to the nation and develop boarder’s areas of the state for the national security, besides Rs 9042 crore required for the relief and reconstruction.”
The Communist Party of India (Marxist) Himachal Pradesh State Committee had fervently requested the 16th Finance Commission to extend substantial financial assistance to the state, emphasizing its unique geographical and ecology .
Former Mayors representing urban local bodies had also submitted a memorandum to the Finance Commission to consider unique challenges of the state while allocating funds for the state.
Reacting to the comments of the Chairman of the Finance Commission, Kisan Sabha leader Kuldeep Tanwar said, “The Finance Commission should regard and respect the diversity of India and keep in mind the sacrifices made by Himachal and contribution in protecting environment and ecology through forest conservation.”
