CM Sukhu Blames Predecessor BJP for Himachal's Financial Strain

Chief Minister Sukhvinder Singh Sukhu attributed Himachal Pradesh's financial issues to the previous BJP government, citing populist policies like free electricity and water. Sukhu asserted that his administration is taking steps to stabilize the economy, including engaging with the 16th Finance Commission and generating additional revenue. The state faces challenges from natural disasters and unfulfilled financial aid from the central government.


Devdiscourse News Desk | Shimla | Updated: 15-08-2024 18:45 IST | Created: 15-08-2024 18:45 IST
CM Sukhu Blames Predecessor BJP for Himachal's Financial Strain
Chief Minister Sukhvinder Singh Sukhu
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Chief Minister Sukhvinder Singh Sukhu on Thursday criticized Himachal Pradesh's former BJP administration, blaming its populist policies for the state's current financial turmoil. Speaking at an Independence Day event in Kangra's Dehra, he highlighted how free water and electricity decisions placed an annual burden of Rs 1,080 crore on the state exchequer.

Sukhu emphasized his government's proactive measures to usher the economy back to stability. He cited the reduction of revenue deficit grants to Himachal by the 15th Finance Commission—a matter the BJP did not address—and added that his team has already propelled the issue with the 16th Finance Commission. His government's recent initiatives have reportedly garnered an additional Rs 2,200 crore in revenue.

Further complicating the state's situation are natural calamities and denied financial assistance from the central government. Deputy Chief Minister Mukesh Agnihotri also echoed these concerns, mentioning the Center's limitations on borrowing, capping of foreign funding, and reduction of revenue deficit grants while holding back GST compensation. Sukhu also announced various welfare initiatives and appealed for more central support.

(With inputs from agencies.)

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