PIONEER NEWS SERVICE/ Dehradun
In the recent meeting with the chairman and the members of the 16th Finance Commission Uttarakhand chief minister Pushkar Singh Dhami pitched for Revenue Needs Grant (RNG) for the Himalayan State from the union government. The focus on the RNG assumes significance in the wake of the fact that Uttarakhand is not likely to get Revenue Deficit Grant (RDG) from the Finance Commission this time. Pertinently Uttarakhand had received a generous Rs 28, 147 crore as RDG from the Union government for the period 2022 to 2027 on the recommendation of the 15 Finance Commission. Since the State has recovered its economy and has come out of the revenue deficit it is unlikely to receive RDF from the 16 Finance Commission. In this scenario, the Dhami government is focussing on a significant share in central taxes and RNG to compensate for the possible loss in absence of RDF. It is learnt that Uttarakhand has sought a sum of Rs 42,000 crore as RNG from the visiting Finance Commission. The State Finance department has sought central grants in lieu of the environmental service given by it on account of its forest cover which accounts for 70 per cent of its geographical area.
The State has forest cover of 24,305 square km. As per an estimate, the ecosystem services rendered by the forests, glaciers, meadows and rivers of Uttarakhand have a monetary value of about Rs 2.5 lakh crore per year. In the year 2018, the State had estimated that the forests of the State provide ecosystem services of Rs 95,000 crore to the country per year.
The Secretary Finance Dilip Jawalkar said that the State will soon present a paper before the FC on the RNG. He said that the State has strong reasons and facts to support its claim.
The 16th Finance Commission headed by eminent economist Arvind Panagariya is on a visit to Uttarakhand. The commission is likely to submit its report to the government of India by October 31 this year.
