Himachal Pradesh government outlines steps for financial recovery and growth amid debt burden - World News Network

Shimla (Himachal Pradesh) [India], January 29 (ANI): Himachal Pradesh’s Technical Education, Housing, and Town and Country Planning Minister Rajesh Dharmani addressed a press conference in Shimla on Wednesday, outlining the state’s financial condition, debt burden, and the steps taken by the Congress government to improve fiscal discipline and foster economic growth.
Dharmani stated that when the Congress government assumed office, it inherited a debt burden of Rs 75,000 crore, along with additional liabilities exceeding Rs 10,000 crore, making the total inherited financial burden over Rs 85,000 crore.
He underlined that the previous BJP government had left behind a debt of Rs 85,000 crore, which the current Congress administration had been repaying. “The opposition wants to blame the current government while absolving itself of responsibility. But the fact remains that we have been managing the financial crisis they left behind,” said Dharmani.
To maintain fiscal discipline, Chief Minister Sukhvinder Singh Sukhu has taken stringent measures, including curbing wasteful expenditure and promoting productive development to boost economic activity.
Dharmani highlighted the government’s efforts to boost tourism, including expanding Kangra Airport, developing a Zoological Park, and promoting water sports and eco-tourism in Bilaspur. Investments are also being made in ropeways to enhance transportation and tourism in remote areas.
For the agriculture sector, the government has implemented incentives for natural farming and set a minimum purchase price (MSP) for agricultural products. Farmers have already sold 300 metric tons of produce under this scheme at Rs 30 per kg, ensuring fair pricing.
“We have introduced a sustainable business model for farmers, helping them connect with consumers efficiently,” Dharmani stated.
The dairy sector has also seen improvements, with the price of cow milk rising from Rs 35 to Rs 45 per liter and buffalo milk from Rs 50 to Rs 55 per liter. To strengthen rural employment, MGNREGA wages have been increased from Rs 240 to Rs 300 per day.
Defending the state’s financial strategy, Dharmani revealed that the government had generated over Rs 2,600 crore in additional revenue within one year.
Addressing concerns over new loans, he stated “The claim that our government is excessively borrowing is politically misleading. In reality, we are repaying the previous government’s debt while managing current liabilities.”
Since December 2022, the government has taken a loan of Rs 30,080 crore, out of which Rs 11,590 crore has gone towards interest payments on old loans, and Rs 9,137 crore has been used to clear previous liabilities. Every month, the state faces a committed liability of Rs 2,800 crore, including salaries, pensions, power subsidies, and public transport funding.
Every month, the state faced a committed liability of Rs 2,800 crore, including salaries, pensions, power subsidies, and public transport funding.
Slamming the BJP government at the Center, Dharmani pointed out that despite severe natural disasters in Himachal, the state had not received any relief aid from the central government. “We submitted claims worth Rs 200 crore under central government norms, but we have not received a single rupee. Additionally, Rs 9,000 crore owed to Himachal remains unpaid by the Center,” he stated.
He also accused Himachal BJP leaders of “defaming the state” during the Haryana elections instead of securing financial assistance for their own state.
Dharmani criticized the BJP’s “free electricity promise” of 125 units per household, calling it an election gimmick that was announced just two months before the polls without budgetary provisions.
Clarifying the Congress government’s social policies, Dharmani stated that schemes such as Indira Gandhi Shiksha Yojana for orphans and Rajiv Gandhi Startup Yojana were not wasteful expenditures but investments in the future.
“Unlike BJP, which handed out freebies irresponsibly, we are building a sustainable economic model for farmers and rural development,” he asserted.
The government had increased excise duty on alcohol to discourage alcoholism and has reinvested the revenue into dairy and agriculture.
Additionally, efforts were being made to reduce unnecessary subsidies for those who can afford to pay.
Dharmani revealed that 3,000 people have voluntarily given up electricity subsidies, ensuring benefits reach the most deserving sections.
Looking ahead, the Congress government envisions a self-reliant Himachal Pradesh by 2032, gradually reducing its dependence on loans.
“The Chief Minister has implemented revenue-enhancing measures that have already increased state income by Rs 2,600 crore in just one year. With continuous reforms, Himachal will achieve financial independence,” Dharmani said.
While acknowledging the challenges, he reiterated the government’s commitment to economic discipline, productive investments, and transparent governance, urging opposition leaders to cooperate rather than mislead the public.
Minister Rajesh Dharmani’s remarks highlighted the Himachal Pradesh government’s fiscal discipline, investment in key sectors, and challenges posed by opposition politics and lack of central support. With long-term planning and revenue-enhancement strategies, the Congress government aims to steer the state toward financial stability and self-reliance. (ANI)

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News