Himachal has a mountain of debt but still there is an emphasis on freebies… Is the announcement of ministers to give up their salaries a trailer of economic crisis?

This is a verse by Dushyant Kumar…
Where it was decided that there would be a lamp for every home
Where there is no light available for the city

This verse seems to be turning into reality. Looking at the poor economic condition of Himachal Pradesh, the government has taken a big decision. Chief Minister Sukhvinder Singh Sukhu announced on Thursday that the Chief Minister, Ministers, Chief Parliamentary Secretary, Chairman of Boards and Corporations will not take salary and allowances for two months. The Chief Minister of Himachal Pradesh has also demanded from all the MLAs to give up their salary and allowances for two months. CM Sukhu says that since the economic condition of the state is not good, he is giving up his and his ministers’ salary and allowances for two months. Chief Minister Sukhu told the MLAs that if possible, adjust for two months. Do not take salary and allowances now. Look ahead.

So, just like in natural calamities, mountains have been seen breaking from Shimla to Manali. Because development was carried out in an uncontrolled manner. Similarly, now the mountain of economic crisis is also breaking in Himachal Pradesh. Because uncontrolled promises were made to gain power, and no work was done to handle the situation. That is why Himachal Pradesh currently has a debt of about 87 thousand crores rupees. This is the highest in any state among the 9 hill states in the country. By March 31, 2025, Himachal Pradesh will have a loan burden of Rs 94,992 crores.

What is the main reason for increase in debt?
What has happened in Himachal Pradesh that the Chief Minister and the Minister have to give up their own salary and allowances. The annual budget of Himachal Pradesh is Rs 58,444 crores. Out of which Rs 42,079 crores is being spent only on salaries, pensions and paying old loans. Because Rs 20,000 crores per year is being considered as the expenditure of only the old pension scheme. The situation is such that the government has not been able to pay Rs 1000 crores for pension, gratuity and other items to 28 thousand employees.

It is not that he has given up his entire salary and allowance. Rather, the Chief Minister has said that he will not take it now, but will take it later when the situation improves. The question is whether this is a trailer of the worsening economic crisis. Where at present the Chief Minister of Himachal Pradesh and his ministers are giving up their salary and allowance for two months, showing that they are making sacrifices.

If you further divide the Sukhu government’s budget, then if the budget is of Rs 100, then Rs 25 is spent on paying salaries, Rs 17 on pension, Rs 11 on paying interest, Rs 9 on repaying loans, Rs 10 on giving grants. Rs 28 remains, in which development work has to be done and free promises have to be fulfilled. It is said that the budget goes wrong here.

How much money is the government spending on which scheme?
Himachal Pradesh has so much debt that the per capita debt has reached 1 lakh 17 thousand rupees. Which is the highest in the country after Arunachal Pradesh. That is, the mountain of debt is huge, yet if we look at the expenses of the promises of freebies, the annual expenditure on giving 1500 rupees per month to women is 800 crore rupees. There is an additional expenditure of 1000 crore rupees annually due to the implementation of the old pension scheme. The government has been spending 18 thousand crore rupees on free electricity subsidy. That is, the expenditure on just three promises comes to 19800 crore rupees annually. Now you think, where the pockets are already empty in giving salaries and pensions, there the new expenditure will only become a burden. This is the reason that even after promising 300 units of free electricity, the Congress government of Himachal Pradesh could not fulfill that promise even after 18 months. In fact, the 125 units of free electricity that was being given earlier also had to be changed. Last month, the 125 units of free electricity being given to domestic consumers paying income tax in Himachal Pradesh was stopped.

Sukhu government gets a shock from the central government
In a setback to the Sukhu government, the central government had earlier reduced the borrowing limit by Rs 5,500 crore. The state was allowed to borrow up to 5 per cent of GDP, but it has been reduced to 3.5 per cent. The state government could earlier borrow up to Rs 14,500 crore, but now it can borrow only Rs 9,000 crore.

The debt left by the BJP government is a legacy: Sukhwinder Singh Sukhu
CM Sukhwinder Singh Sukhu said, ‘We have inherited the debt left by the previous BJP government, which is responsible for pushing the state into a financial emergency. We have improved revenue receipts. The previous government collected excise revenue of Rs 665 crore in five years and we earned Rs 485 crore in just one year. We are working on it and are committed to improving the financial health of the state.’

-There are over 1,89,466 pensioners in the state, which is expected to increase to 2,38,827 by 2030-31.

-The central government has reduced the debt limit from 5 per cent to 3.5 per cent, which means the state government will be able to raise only 3.5 per cent of the GDP as debt.