Cash-strapped Himachal’s debt rises to Rs 81,045 crore: CAG

Dharamsala, Dec 23 (IANS) Cash-strapped the Congress government in Himachal Pradesh has raised a loan of Rs 12,912 crore to meet its development needs in 2022-23. 

However, the total debt burden on the state has been Rs 81,045 crore till March 31, 2023, the Comptroller and Auditor General of India (CAG) said on Saturday.

The CAG report tabled by Chief Minister Sukhvinder Sukhu on the last day of the Assembly session said that on April 1, 2022 -- the total debt was Rs 68,133.72 crore.

It said that the state government has not constituted a sinking fund for loans raised by it in the open market.

Loans out of the collection in the “small savings scheme” and “public provident fund” in the post offices are being shared between the state and the Central governments in the ratio of 3:1.

A separate fund vis-a-vis national small savings fund was created in 1999-2000 for the purpose of releasing loans out of small savings collections.

During 2022-23, repayment of Rs 569.10 crore was made. The balance outstanding at the end of the year was Rs 3,820.66 crore which was 6.83 percent of the total internal debt of the state as on March 31, 2023.

The CAG said in 2022-23 the total contribution to the National pension System (NPS), which is a defined contribution pension scheme, was Rs 1,782.50 crore -- employees’ contribution Rs 741.59 crore and government’s contribution Rs 1,040.88 crore and interest Rs 0.03 crore.

The present government on May 4, 2023, has notified reversion to the Old Pension Scheme (OPS) with effect from April 1.

In a written reply to member Chaitanya Sharma regarding the revenue collection during Question Hour, the Chief Minister, who also holds the Finance portfolio, said the government is making efforts to enhance its tax and non-tax revenues.

The government has implemented GST Revenue Enhancement and Capacity Building Project amended Excise Policy for allotment of retail liquor vends through fresh allotment and allowed stone crushers to utilise muck generated by hydel project during the construction of tunnel after paying additional amount equivalent to 75 per cent of royalty on every ton of mineral.

Replying to a question that how does the government plan to address the fiscal deficit of the state, the Chief Minister said in addition to the efforts to enhance state's own revenues, the government will curtail unproductive expenditure to contain its fiscal deficit.

He said that the government is making efforts to shift towards electric vehicles, e-office and also rationalised the institutions which were opened without budgetary provisions. 

Regarding whether the central government provided financial grant or line of credit to the state in post-flash floods, the Chief Minister said the Centre has released Rs 787.25 crore from the National Disaster Response Fund (NDRF).

“Funds amounting to Rs 360.80crore have been released by the Central government which is normal entitlement of the state as per devolution by the 15th Finance Commission. No extra line of credit has been provided by the central government in spite of repeated requests.

“The state government has notified ‘special relief package’ for the re-construction and restoration of infrastructure in the state,” he added.

Himachal Pradesh has suffered more than Rs 10,000 crore loss due to damage caused to infrastructure during monsoon rains.

--IANS

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