Concerns Over 16th Finance Commission's RDG Cut Amid Himachal Pradesh's Fiscal Challenges

The 16th Finance Commission's decision to discontinue the Revenue Deficit Grant (RDG) has raised concerns among hill states like Himachal Pradesh, which face structural challenges such as difficult terrain and low population density. Critics argue this move contradicts constitutional provisions and may hinder development. Meanwhile, analyses highlight that Himachal Pradesh's fiscal crisis also stems from rising state debt and expanded subsidies under previous governments, reflecting broader financial management issues beyond central allocations.