Urge Centre to waive Rs 1 lakh crore debt: Cabinet sub-panel to govt
The Cabinet Sub-committee on Resource Mobilisation has recommended in its report that the Central Government should be approached for the waiver of the Rs 1 lakh crore debt on the state and increase in the loan limit by another two per cent.
The sub-committee headed by Deputy Chief Minister Mukesh Agnihotri submitted its report to the Cabinet on April 5. It recommended in the report that besides strongly pleading Himachal’s case before the next Finance Commission, the state government should approach the Central Government for the waiver of Rs 1 lakh crore debt.
The Cabinet sub-committee in its report pointed out that as Himachal was given statehood due to political and cultural reasons, knowing well that it did not have enough resources to generate revenue, the Central Government must bail it out from this financial crisis. The current financial year 2025-26 is challenging for the state government, hence it has been recommended that the Central Government should be convinced to help the state in getting all its pending dues, including the Rs 10,000 crore Post Disaster Need Assessment (PDNA) grant for damage suffered in the 2023 monsoon disaster.
In its report, the sub-committee also recommended that the reducing revenue deficit grant (RDG) from the Central Government should be fixed considering that Himachal had extremely limited avenues for revenue generation. “Himachal has been adversely affected by the Goods and Services Tax (GST) compensation to states ending in June, 2022. As Himachal is not a consumer and market-oriented state, the GST compensation that it was given earlier should be restored,” is yet another recommendation.
The sub-committee recommended that the Central Government be approached to remove the cap on funding under various externally-aided projects being undertaken in various departments like tourism, agriculture and horticulture. It also suggested that the Central Government be requested to intervene and help Himachal get Rs 4,200 crore of pending arrears from the Bhakra Beas management Board (BBMB) in view of the 2012 Supreme Court ruling.
Himachal’s debt burden has crossed Rs 1 lakh crore and the Congress government is finding it difficult to meet its committed liabilities of salaries and pension, repayment of loans raised earlier and the interest component. The state is heavily dependent on the RDG and its share in central taxes for meeting its committed liabilities.
As part of the measures aimed at cutting wasteful expenditure, the Cabinet Sub-committee has recommended a 10 per cent reduction in the fleet of government vehicles being used by officials in the state.
To bring down the running cost, it has recommended that the fleet of the Himachal Pradesh Transport Corporation (HRTC) be gradually replaced by electric vehicles.
Seek help to get Rs 4,200 crore dues from BBMB
- The Cabinet sub-committee suggested to the Congress government to convince the Central Government to help the state in getting all its pending dues, including the Rs 10,000 crore Post Disaster Need Assessment grant, for damage suffered in the 2023 monsoon disaster
- It also suggested that the Centre be requested to help Himachal get Rs 4,200 crore of arrears from the BBMB
- The Cabinet Sub-committee has recommended a 10 per cent reduction in the fleet of government vehicles
Himachal Tribune