Himachal Pradesh’s borrowing spree fuels consumption, not development, says CAG audit
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Shimla, Sept 1,
A recent report from the Comptroller and Auditor General (CAG) of India on Himachal Pradesh’s state finances for the fiscal year 2023-24 has raised concerns about the government’s fiscal management. The audit reveals that a significant portion of borrowed funds are being used for daily expenses and debt repayment rather than for long-term capital creation or development projects.
The report highlights a troubling trend: from 2019-20 to 2023-24, committed expenditure, including salaries, pensions, and interest payments, consumed between 64% and 70% of the state’s revenue expenditure. This leaves little financial flexibility for critical investments in infrastructure and other developmental sectors.
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According to the CAG, the state recorded a revenue deficit of Rs 5,558.59 crore and a fiscal deficit of Rs 11,266 crore in 2023-24. The audit emphasizes that this financial approach, which prioritizes consumption over capital investment, is not sustainable.
The report also provides an overview of the state’s economy, noting its Gross State Domestic Product (GSDP) and the contributions of the primary, secondary, and tertiary sectors. However, the primary focus of the audit is the state’s financial reporting practices. The CAG pointed out issues such as delayed submission of utilization certificates and outstanding balances, which impact the quality and transparency of the accounts.
Noteworthy that this CAG audit covered period from 2019-23. In the period both BJP (2017-2022) and Congress (Dec 2022- till date) were in power in the State.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
