Himachal Heading Toward Debt Trap?

Himachal This Week

The opposition is trying to corner the ruling party in the ongoing budget session of Himachal Assembly in order to know the reality behind budgetary figures. The question raised by Leader of Opposition Prem Kumar Dhumal is directly connected to this hill state’s economy. The budgetary deficit will keep on piling if Himachal hopes to march ahead with the increasing debt liability. Is Himachal heading toward a debt trap? The opposition has to rise and speak if state’s economy looks weak and people’s income has increased, political observers feel. The issue of unemployment allowance gained momentum in the recent past but state’s exchequer gets depleted whenever any decision is taken on political considerations. And this thinking is not restricted to only one party but reflects the political ideology to capture power. And former chief minister must get reply if he raises the question of resource mobilisation. It also pertains to a generation that is looking to build career on state’s resources. Educated unemployed youths are looking for opportunities and not at the unemployment allowance. They require state’s vision as youths are more keen to prove their potential in competitive arena. It can’t be achieved either by raising age limit for government jobs to forty five years or by offering unemployment allowance. Himachali issues are also linked to development of infrastructure for generation of employment opportunities. As a result, the opposition has every right to ask as to why there is delay on the issue of national highways. It is another matter that these projects require political consensus due to bottleneck of forest conservation act. Self employment does not get the impetus even as ruling and opposition parties exchange heated words on the issue of recruitment to government jobs. Section 118 scares investors even as the government has proposed a start up policy. There are issues like strengthening infrastructure in various sector that will strengthen economy and generate employment opportunities. However, governments of both the main political parties have failed on one issue. Neither government’s figures are honest with regard to protecting farmers from stray animals and monkeys nor opposition’s salvos.

Debt Liability is Rs. 40,000 Crore

The Congress government has raised a loan of Rs. 17,000 crore during four years of its present tenure to carry out developmental activities. This money was utilised to fullfill salary, allowances and pension liabilities besides implementing developmental schemes. This information came to the fore in reply to a question in Vidhan Sabha. Even as the government has repaid Rs. 6329.55 of earlier loan during past four years, the total debt liability of Himachal is nearly Rs. 40,000 crore now.

* Increase in debt during recent years is because of sharp reduction in Revenue Deficit Grant coupled with increased salary burden due to pay scale revision by Punjab Government and followed by HP Government in 2012. The state government has raised all market loans only after obtaining the approval of Government of India

Virbhadra Singh, Chief Minister

* A letter by Union Finance ministry says that Himachal’s debt liability will increase to Rs. 45213. 30 crore till March 31, 2017 but the government is indulging in extravagant expenditure. The loan is continuously rising even as Centre is providing Rs. 40625 crore to the state under Revenue Deficit Grant

-Prem Kumar Dhumal, Leader of Opposition

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