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Why India should pay hill states a ‘green bonus’ for its forest—based on its conservation results

Why India should pay hill states a ‘green bonus’ for its forest—based on its conservation results

Why India should pay hill states a ‘green bonus’ for its forest—based on its conservation results


Himachal Pradesh, one of 17 states to get it, was allotted ₹37,199 crore by the 15th Finance Commission for 2021-26, and the yearly amount shrank to ₹3,257 crore by 2025-26. The 16th Finance Commission has recommended no such grant to any state for 2026-31. Its report argues that the expectation of these grants “encourages states to be profligate,” or spend carelessly.