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Himachal debt burden crosses Rs 1 lakh crore mark, CAG flags rising liabilities
Shimla, March 30,
Himachal Pradesh’s increasing fiscal stress has come into focus again, with the state’s total debt and liabilities crossing the Rs 1 lakh crore mark for the first time, according to the Finance Accounts report (2024–25) of the Comptroller and Auditor General (CAG).
The report reveals that the overall liabilities of the state stood at Rs 1,04,410 crore as on March 31, 2025, a significant increase from Rs 96,522 crore in the previous financial year, underscoring a steep rise in the debt burden.
A closer look at the data shows that public debt alone accounted for Rs 75,554 crore, up from Rs 70,369 crore a year earlier, reflecting the state’s continued reliance on borrowings to sustain its finances.
During 2024–25, the government raised Rs 26,622 crore through borrowings, while repayments stood at Rs 18,168 crore, resulting in a net addition to the debt stock. This trend seems closely linked to the widening fiscal imbalance, with the state recording a fiscal deficit of Rs 12,611 crore and a revenue deficit of Rs 6,804 crore, indicating that even routine expenditure is not completely supported by its income.
The pressure on finances is further compounded by a high level of committed expenditure. The report shows that salaries alone accounted for Rs 15,335 crore, pensions for Rs 10,536 crore and interest payments for Rs 6,260 crore, together consuming a big share of the state’s revenue expenditure and leaving limited space for development works.
At the same time, liabilities under the Public Account, including small savings, provident funds and deposits, also increased to Rs 28,851 crore from Rs 26,148 crore in the previous year, adding to the overall burden.
Also read:Himachal Pradesh Debt to Cross Rs 1.12 Lakh Crore by 2026-27, Fiscal Pressure may Rise
The CAG report also highlights the state’s continued dependence on central transfers, with Rs 10,681 crore coming as the share of central taxes and Rs 13,721 crore as grants from the Centre.
Despite this support, the rising gap between receipts and expenditure and the growing reliance on borrowings point to structural challenges in future. The crossing of the Rs 1 lakh crore liability threshold thus marks a critical juncture for Himachal Pradesh’s economy, spelling concerns over sustainability and shrinking fiscal room in the years ahead.
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