DEHRADUN: Chief Minister Pushkar Singh Dhami on Monday presented a detailed account of Uttarakhand’s financial situation, development needs, and challenges during a meeting with the 16th Finance Commission, chaired by Dr. Arvind Panagariya, at the State Secretariat.
Emphasizing the state’s unique environmental contributions, CM Dhami urged the Commission to provide appropriate compensation under the principle of Environmental Federalism, highlighting the “eco service cost” borne by Uttarakhand due to its extensive forest cover. He also recommended a 20% increase in the weightage of forest cover in tax devolution and called for special grants to support forest conservation and management.
Welcoming the Commission members—Anne George Mathew, Dr. Manoj Panda, Dr. Soumya Kanti Ghosh, Secretary Ritvik Pandey, and Joint Secretary K.K. Mishra—CM Dhami noted the state’s progress over the past 25 years. He highlighted significant achievements, including a budget exceeding ₹1 lakh crore, a record 4.4% drop in unemployment, and an 11.33% rise in per capita income, above the national average.
The Chief Minister outlined several key challenges facing the state:
High conservation costs and restrictions on development in forest areas.
A locational disadvantage following the end of the Industrial Concessional Package in 2010.
Limited private sector participation in hilly areas, especially in health and education.
Increased expenditure on disaster response, infrastructure, and services due to natural calamities and a large floating population from religious tourism.
He also advocated for:
Special grants for water conservation initiatives like the ‘Bhagirath App.’
Compensation for hydroelectric projects affected by Ganga river regulations.
Recognition of fiscal discipline and tax effort in tax-devolution criteria.
Consideration of revenue need grants over revenue deficit grants.
Chairman Panagariya acknowledged the state’s progress and the challenges it faces due to its terrain. He assured that the concerns of Uttarakhand and other hill states would be given due consideration. The 16th Finance Commission is expected to submit its final report to the Central Government by October 31, 2025.
Finance Secretary Dilip Jawalkar presented a comprehensive overview of the state’s fiscal challenges. Chief Secretary Anand Bardhan, Principal Secretary R.K. Sudhanshu, and other senior officials were also present at the meeting.
