Himachal Heading Towards Serious Economic Crisis

Himachal This Week, Shimla

Jai Ram government no doubt has sensed the economic threat coming its way because of towering Rs. 46,500 crore debt, but the state government has also made it clear that they have to move on loan crutches to run the state. Comptroller and Auditor General (CAG) in its report has also has revealed about towering debt and imminent threat in future.

The CAG has said that Himachal will be facing serious economic threat in coming few years. It has mentioned that pressure on Himachal government is increasing and the reason behind this pressure is need of heavy amount to pay back debt. Himachal government will have to pay back 55% of debt in next seven years, which is an uphill task in front of the state government. Huge amount spent to pay back debt will put pressure on the economy, which will directly affect development too.

CAG report was recently presented in state assembly that revealed that debt per person has increased by 50% in last five years in Himachal. The burden of debt has reached to Rs. 65,444 per person in hill state.

The CAG report does not show rosy picture for Himachal’s economy either. The report says that budgetary liabilities of state government has increased by 15% as compared to past few years. The analysis of liabilities figures as told by CAG is Rs. 47,244 crore. It is clear that government raised heavy loans to meet towering expenses in 2016-17.

Every Himachali Carries Rs 65,444 Debt

Surprisingly, liabilities of Himachal government have reached to 38% of the state Gross Domestic Product (GDP) and 180% of the revenue received. The CAG in its report has said that Himachal government will have to pay back Rs. 3096 debt in coming year. The state will have to pay 31% of the debt amount, means Rs. 10,008 crore, in coming one to five years while debt amount of Rs. 19,466 crore needs to be paid back in five years. Payment of huge debt amount will have its negative impacts on Himachal’s economy.

Rs. 1508 Crore On Salaries

The Comptroller and Auditor General (CAG) report mentions that there is 18% increase in payment of daily allowance (DA), salary and other benefits of government employees. The state government has spent RS. 1508 crore on this particular aspect. The state government did not gave preference to capital expenditure. The state spent 11.17% of state’s total expenditure on capital expenditure in 2015-16 and 10.89% amount in 2016-17.

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