Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu met the chairman of the 16th Finance Commission, Arvind Panagariya, on Tuesday and sought the panel's cooperation to strengthen the state's financial condition.
He also requested the commission for the creation of a separate 'Green Fund' with an earmarked annual allocation for hill states. Sukhu added that this issue was discussed with the prime minister too, a statement from the state government said.
Asserting the Himachal Pradesh government was following the path of fiscal prudence, he claimed it was achieving sustainable development goals well, and called upon the panel to support the state in its recommendations in view of its financial condition in the aftermath of damage caused by flash floods.
Pointing out that hill states incur much higher expenditure compared to other states, Sukhu remarked that devolution to a hill state should be at least twice their share of population, the statement said.
He requested the continuation of the Revenue Deficit Grant (RDG), keeping in view topographical disadvantages and limited scope for raising revenue. The chief minister added that the state was facing a financial crisis because of the steep tapering of RDG by the 15th Finance Commission.
The chief minister also apprised Panagariya about the suggestions made by the state for disaster management, relief from debt trap, grant to local bodies and state-specific grants, the statement said.
Arvind Panagariya assured Sukhu of all possible assistance to the state, it claimed.
