Himachal Pradesh Government today requested the Centre to sanction special financial package of Rs. 2500 crore to the State. The demand was made by Prof. Prem Kumar Dhumal, Chief Minister while speaking in pre-budget meeting of Finance Ministers of the States in New Delhi today.
Chief Minister requested the Union Government to sanction an united special plan assistance of Rs. 1500 crore to fund State Annual Plan 2011-12 by making provision in proposed budgetary support to the Planning Commission in next finance budget. He requested the Union Government to reconsider the acceptance of recommendations of Finance Commission recommendations on linking of State specific grants to fiscal deficit targets as these were not practical and had not appreciated the borrowing needs of these States to finance their developmental projects. He asked the Union Government to adopt old practice under which such releases have always been made without linking them to fiscal deficit targets.
Prof. Prem Kumar Dhumal requested the Union Government to grant sanction to levy generation tax of 10 paise per unit on hydro power generation in the State keeping in view of recommendations of C. Rangarajan Committee as this would generate Rs. 250 crore to the State revenue which could be utilized for developmental needs of the State.