Shimla (Himachal Pradesh) [India], December 14 : Himachal Pradesh Tribal Development Minister Jagat Singh Negi and Panchayati Raj Minister Anirudh Singh on Saturday urged BJP National President Jagat Prakash Nadda to actively intervene with the Union government to safeguard the financial interests of the state, saying Himachal is facing a deepening fiscal crisis due to withheld funds and reduced borrowing limits.
In a joint statement issued in Shimla, the ministers said they were pleased to see Nadda holding a position of national importance but expressed concern that issues critical to Himachal Pradesh were not being pursued forcefully at the Centre. They noted that Prime Minister Narendra Modi announced a Rs 1,500 crore relief and rehabilitation package for disaster-hit families in the state. Still, several months have passed without the funds being released.
The ministers further alleged that around Rs 9,200 crore deposited under the National Pension Scheme (NPS) has been withheld by the Union government. They said the state's decision to revert to the Old Pension Scheme (OPS) led to a Rs 1,600 crore reduction in its borrowing limit, resulting in an estimated cumulative loss of Rs 4,800 crore over the past three years.
Negi and Singh blamed the Centre for Himachal's financial stress, citing a sharp reduction in the Revenue Deficit Grant (RDG) and a steep cut in the state's borrowing ceiling. According to them, the borrowing limit has fallen from Rs 10,949 crore in 2021-22 to Rs 3,257 crore in 2025-26, with a significant portion of borrowings now being used merely to service interest payments. They also said the Centre withdrew the Rs 1,600-crore additional borrowing window earlier available to the state.
Referring to the 2023 monsoon disaster, the ministers said a Central team assessed losses at around Rs 9,000-9,500 crores. The state submitted a claim of Rs 9,042 crore under the Post Disaster Needs Assessment (PDNA) framework, but is still awaiting nearly Rs 10,000 crore, in addition to the previously announced Rs 1,500 crore package.
They noted that the state government has already spent about Rs 4,500 crore from its own resources for relief and rehabilitation. Urging Nadda to address these matters urgently, the ministers said Himachal Pradesh expects stronger advocacy from him in the state's best interests.