Himachal Pradesh's Escalating Debt Crisis Unveiled

The government of Himachal Pradesh is facing a mounting debt crisis, as indicated by recent findings from the Comptroller and Auditor General (CAG). The state's debt liability rose by a staggering Rs 10,966 crore in the fiscal year 2024-25, bringing the total to Rs 1,03,331.91 crore.

Despite the state government raising Rs 26,622 crore over the year, only Rs 18,168 crore has been repaid, leaving a significant gap that has exacerbated the fiscal burden. This is compared to the Rs 92,365 crore owed as of April 1, 2024, underscoring a marked deterioration in financial health.

The report, tabled by Chief Minister Sukhvinder Singh Sukhu, also highlights the increase in public debt liabilities by Rs 2,513.53 crore. Additionally, ten long-term loans were secured at varying interest rates, with a notable maximum of 9.63% and a minimum of 8.08%.