Himachal debt soars to 86589Cr in 22-23
Shimla, Dec 24,
The Comptroller and Auditor General (CAG) revealed the financial scenario in Himachal Pradesh, disclosing that the state government accrued loans amounting to Rs 13,055 crore during the 2022-23 fiscal year. This surge propelled the debt burden from Rs 73,534 crore in 2021-22 to a staggering Rs 86,589 crore by the end of 2022-23. The loans included substantial amounts raised in the last quarter of the fiscal year.
This revelation is part of the Audit Report on Finance Accounts for 2022-23, which Chief Minister Sukhvinder Singh Sukhu presented in the Vidhan Sabha on the final day of the Winter Session. The state now faces a mounting financial crisis, raising concerns among financial experts regarding its ability to fulfill economic promises and comply with the Fiscal Responsibility and Budget Management Act, designed to curb non-productive expenses and enhance resource mobilization.
Addressing the challenge of interest payments, the CAG report attributes it to continuous borrowing, with the government allocating Rs 4,828 crore in the 2022-23 fiscal year, compared to Rs 4,472 crore in the preceding year.
The report highlights a surge in expenditures on subsidies, increasing from Rs 1,240 crore in 2021-22 to Rs 1,973 crore in 2022-23, partly due to populist announcements. The revenue deficit, however, experienced a marginal decrease from Rs 7,962 crore to Rs 6,335 crore during the same period.
More than 50% of the total expenditure, amounting to Rs 50,539 crore, was directed towards salaries and pensions. Expenditure on salaries increased by Rs 4,028 crore to reach Rs 15,669 crore, while pension payments surged from Rs 6,088 crore to over Rs 9,283 crore, both following the implementation of the Sixth Pay Commission recommendations.
The CAG report also raises concerns about the government’s failure to collect utility certificates, prompting auditors to call for necessary steps to rectify this lapse. The report underscores the imperative need for strategic financial management to steer the state away from its current economic challenges.
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