CM Sukhu seeks enhanced borrowing limit to support Himachal’s finances

Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu met Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday and urged her to adopt a liberal approach in providing financial assistance and grants to the state.

He requested an increase of 2 percent in the state’s additional borrowing limit for the remaining period of the financial year 2025–26, citing the state’s strained fiscal condition.

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The Chief Minister pointed out that despite the government’s continuous efforts to enhance revenue, Himachal’s financial health has been severely impacted by regular reductions in revenue deficit grants and repeated natural disasters over the past three years.

He stated that the revenue deficit grant had declined sharply from Rs 10,249 crore in 2020–21 to Rs 3,257 crore in 2025–26 under the 15th Finance Commission period.

Sukhu further highlighted that the state had suffered an estimated loss of around Rs 18,000 crore due to natural calamities during the last three years, which also claimed 1,321 lives and caused extensive damage to public and private property.

He added that the recent rationalisation of Goods and Services Tax (GST) rates had further weakened the state’s fiscal position by reducing its tax base.

In light of these challenges, the Chief Minister appealed for liberal financial assistance and special support from the centre.

He also apprised the Union Finance Minister of the corrective measures being taken by the state government to improve its fiscal health through optimal utilisation of limited resources.

The Union Finance Minister assured the Chief Minister that Himachal Pradesh’s demands would be considered sympathetically. She also assured additional support under Special Central Assistance and indicated that the state would receive priority consideration for approvals, particularly for health sector projects.