Shimla: In view of the financial woes of Himachal Pradesh, the Sukhwinder Singh Sukhu government has sought permission to take loans from the Centre for the last quarter of this fiscal from January to March.
The state government has already taken nearly 99 percent of its loan limit for the financial year 2023-24. Now, for the last quarter, a demand has been placed for an extension of loan limit by Rs 5000 crore. CM Sukhwinder Singh Sukhu is going to present the budget on February 17. With the government of Himachal going through economic crisis, arrangements for the salary of the month of February has been made, but for March, the government has no other choice but to wait for the increase in the loan limit.
The officials of the finance department are constantly in touch with the concerned ministry of the central government to get the loan limit sanctioned. It is being told that Himachal will have to wait at least one more week because a case between the central government and the government of Kerala regarding financial independence is scheduled for hearing in the Supreme Court.
In this situation, no decision can be taken on the permission sought by Himachal. Notably, Himachal got permission from the Centre in the last financial year and at that time the then BJP government had requested for a loan limit of Rs 6,000 crore and sanction was given in January 2023.
Himachal government's loan limit for 2023-24 was Rs 6608 crore. Out of which, the government has taken a loan of Rs 6300 crore and only Rs 308 crore is left. This is not enough to combat the existing economic crisis. The government is dependent on this loan limit to pay the employees salaries for the month of March. So, the government has requested to increase the loan limit for the last quarter of the financial year. Himachal chief secretary Prabodh Saxena approached the Finance Ministry in January to complete the loan limit formalities.
"Increasing the loan limit has been requested by Himachal government for the last quarter and all the formalities have been completed. Now the green signal from the Union Finance Ministry is awaited", Prabodh Saxena, Chief Secretary, Himachal Pradesh said.
The Congress-led government in Himachal has taken a loan of Rs 14,000 crore since coming to power. The Sukhwinder government had taken a loan of Rs 1,000 crore in the month of January this year. This loan amount came to the treasury of the government on January 17 this year. Earlier in November 2023, the government had taken a loan of Rs 800 crore and in October 2023, Rs 1,000 crore was taken.
The state government has to spend more than Rs 1500 crore every month on salary of employees and pensioners. Out of this, only Rs 1300 crore is spent on salary. A large part of Himachal government's budget is spent on the salaries of government employees. After the implementation of the recommendations of the Sixth Pay Commission, the annual salary expenditure has reached Rs 15,669 crore
The payment of interest is also a big problem. Himachal government has to pay Rs 4828 crore annually on the interest of the loan taken. CAG has issued several warnings about the debt crisis in Himachal. In every report of CAG, concern is raised about the rising debt. Former CM and current Leader of Opposition Jairam Thakur said that the Sukhwinder Singh Sukhu government has not done anything other than taking loans. At the same time, CM said that the Congress government is suffering from the debt taken by the previous BJP government. CM Sukhu said that his government has taken many measures to increase revenue. Its effect will be seen in the future.
"Debt is now a bitter reality for Himachal. Both the major parties will have to move away from politics and think of ways to increase revenue. The burden of OPS will also be visible in the coming time. Discontent among employees due to non-payment of DA and arrears. will also increase. The state government will have to take care of this" KR Bharti, former Finance Secretary, Government of Himachal Pradesh said.
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