Himachal Pradesh's Debt Drama: Accusations Fly over Financial Mismanagement

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has accused the previous BJP government of creating a 'debt trap' by misusing Rs 68,000 crore in central grants. Amid debates over historical borrowing, Sukhu highlighted the need for increased capital expenditure, while the Opposition criticized current fiscal practices.

In a fiery exchange, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu accused the former BJP administration of financial missteps leading to a crippling debt situation. Sukhu claimed that Rs 68,000 crore received from the Centre in the form of GST compensation and revenue deficit grants was squandered on freebie programs, exacerbating the state's financial woes.

Sukhu revealed that his government had borrowed Rs 29,046 crore over two years, with much of it allocated to interest and debt repayment, leaving only a fraction for developmental initiatives. The Chief Minister aims to boost capital expenditure during 2025-26, despite constraints imposed by the restoration of the Old Pension Scheme and borrowing limits.

Conversely, Leader of the Opposition Jai Ram Thakur challenged Sukhu's assertions in a budget discussion, highlighting inconsistencies in loan figures and labeling the current administration as the 'fastest loan-raising government.' As fiscal tensions rise, concerns over the soaring loan liability remain prevalent.

(With inputs from agencies.)