Shimla: Former Union minister and BJP MP from Hamirpur, Anurag Singh Thakur, on Monday clarified that Himachal Pradesh’s share of the divisible pool increased from 0.83% under the 15th Finance Commission to 0.914% under the 16th Finance Commission, translating into an additional Rs 2,388 crore in 2025-26.Thakur released a detailed response to claims by the Himachal Pradesh chief minister Sukhvinder Singh Sukhu regarding the discontinuation of revenue deficit grants (RDGs) under the 16th Finance Commission. He explained that RDGs under the 15th Finance Commission were temporary, front-loaded grants to help states through the Covid-19 shock and aimed at achieving near-zero revenue deficits by the 2025-26 fiscal year. He stated that the 16th Finance Commission discontinued routine RDGs because persistent weak tax effort and high committed expenditures in some states, including Himachal Pradesh, prevented structural fiscal improvement.The Hamirpur MP also highlighted Himachal’s fiscal challenges, including low own-tax effort (5.6% of gross state domestic product (GSDP) in 2023-24), high revenue expenditure (21% of GSDP), large deficits, rising debt (42.8% of GSDP in 2023-24), and low capital spending, which justified the 16th Finance Commission’s conditional approach. He noted that other states, including opposition-ruled ones, also benefited from the 16th Finance Commission formula, showing that allocations were based on objective criteria, not partisanship.Thakur suggested the state machinery focus on strengthening fiscal discipline, improving tax mobilisation, and investing in the state’s future, emphasising that increased devolution under the 16th Finance Commission provides a strong opportunity for Himachal Pradesh’s growth. MSID:: 127864314 413 |
