Performance better than the national average in per capita income and GSDP. Underneath these shining economic figures lies a Uttarakhand which is suffering from socio-economic inequality. Environmental barriers outweigh the people’s desire for development. This area comprising about 10 districts in the middle and high Himalayas needs a booster dose of additional assistance for infrastructure development. On this basis, 20 departments have placed a demand of about 44 thousand crores before the 16th Finance Commission.
Financial assistance of more than 85 thousand crores was received
Earlier, on the basis of the recommendations of the 15th Finance Commission, the state received financial assistance of more than 85 thousand crores. In such a situation, it is believed that the assistance to be received for the next five years on the recommendations of the current commission can cross 90 thousand crores. The team of the Commission, led by Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, will visit Nainital on the third and last day on Wednesday. Based on the recommendations of the Commission, the state’s share in central taxes and central grants to be received for the next five years from the financial year 2026-27 is to be determined. On last Monday, Chief Minister Pushkar Singh Dhami has submitted the memorandum of the state to the Commission.
Except Haridwar and Udham Singh Nagar, Nainital and Dehradun, the remaining nine districts are mountainous. These nine districts are mainly the womb of the possibilities of tourism, hydroelectric project, forestry-horticulture, natural-organic farming, on the basis of which the state is dreaming of standing on its feet. Keeping these in mind, the proposals of financial assistance given by the departments are worth about 44 thousand crores. These departments include forest, drinking water, energy, tourism, agriculture, rural development, panchayati raj, medical, education, public works, skill development, disaster management, industry, social welfare, irrigation, urban development, planning, excise, transport and home. The state government has demanded special grant for forest and water conservation due to environmental barriers. Due to the forest area being more than 71 percent, there is a problem of shortage of land for development and infrastructure works. The state has raised the demand for special grant on the basis of its more than 45 percent dense forest area. Out of the environmental services worth three lakh crores that the country receives from Uttarakhand every year, services worth about one lakh crore are being received from the dense forest area. Along with the special grant, the state has emphasized on increasing the weightage of forest cover to 20 percent in deciding the state’s share in central taxes. However, the 16th Finance Commission has kept this weightage at 10 percent like the previous commission. Earlier, it was kept at 7.5 percent in the 14th Finance Commission.
State’s expectations from 16th Finance Commission
State Special Grant
Cost Disability Factor Assistance
Special Grant for Water Conservation
Compensation for loss due to ban on hydroelectric projects
Special Grant for Floating Population
Make area standard with population
Assistance for Industries
Financial assistance to schemes of 20 departments
Assistance received from 15th Finance Commission in this manner (Amount- Crore Rupees)
State’s share in central taxes, 47,234
Revenue Deficit Grant, 28147
Health, 797
Disaster Management, 5752
Local Bodies, 3384
