HP on path of self-reliance despite fiscal challenges: Governor
Breaking convention, the governor improvised his speech and hailed an initiative launched by him to tackle the drug menace in the state
Himachal Pradesh governor Shiv Pratap Shukla on Monday said the state was on path of self-reliance despite facing economic challenges steeping from tapering revenue grant from Centre.
“The state government has fulfilled six of the 10 guarantees made to the people, including restoration of the Old Pension Scheme, ₹1,500 for women, ₹680-crore Rajiv Gandhi Start--Up Swarozgar Yojana and MSP on wheat and maize,” the governor in his 90-minute address in the assembly on the opening day of the budget session.
“With GST compensation to states coming to an end in 2022 and revenue grant being reduced to ₹3,257 crore in 2025-26, the state is facing fund crunch. However, this has not impacted the pace of development,” he added.
Breaking conventions, the governor improvised his speech and hailed an initiative launched by him to tackle the drug menace in the state. The governor’s address conventionally lists the state government’s achievements.
Shukla opened his address while hailing the initiative against drug menace and said the public’s support is a must to eradicate the social evil.
“Being a hilly state, Himachal lacks adequate resources and its dependence on central grants is high. Following the implementation of GST, the state’s reliance on Centre assistance further increased as many state-imposed taxes were not merged into GST. This transition led to significant financial losses, which were initially compensated through GST compensation for five years. However, this grant was discontinued in July 2022, exacerbating the state’s financial strain,” he said.
Shukla added, “The inadequate revenue deficit grant recommended by the 15th Finance Commission has worsened the situation. In the current financial year, ₹6,258 crore has been recommended and by the final year of the 15th Finance Commission, it will be reduced to ₹3,257 crore.”
Devp works progressing rapidly
“For the current financial year, the budget estimate stands at ₹6,270 crore, demonstrating that the government has not allowed capital expenditure to decrease despite the declining revenue deficit grant. Development works are progressing rapidly,” said the governor. He maintained that the state government did not let the pace of development slow down despite increasing financial troubles.
The address highlighted reforms across sectors such as agriculture, horticulture, education and women’s welfare, being implemented by the current government. He applauded the performance of students from the state, who were ranked best at the national level in the Annual Status of Education Report (ASER).
