Himachal Pradesh’s debt rises to ₹1.04 L Cr; 70% borrowed funds used for ‘Loan Repayments’
Shimla, March 17,
Himachal Pradesh’s debt burden has surged to ₹1,04,729 crore, with ₹29,046 crore borrowed in the last two years, Chief Minister Sukhvinder Singh Sukhu revealed while presenting the 2025-26 budget estimates. Of this, only ₹8,093 crore has been allocated for developmental projects, while nearly 70% has been used for repaying interest and past loans.
The state has repaid ₹12,266 crore in interest and ₹8,087 crore in loan settlements over the past two years. Sukhu noted that the debt has risen from ₹75,683 crore to the current level, with borrowings at 3.5% of GDP in 2023, expected to reduce to 3% in 2025-26.
In line with the Fiscal Responsibility and Budget Management (FRBM) Act, the government plans to borrow ₹6,051 crore in 2024-25. Revenue generation has also seen an uptick, with ₹712 crore collected from VAT and ₹145 crore from other levies and taxes.
The state’s economy is projected to grow by 5% this year, with per capita income expected to reach ₹2.57 lakh. Sukhu also announced support for the agricultural sector, including higher minimum support prices (MSP) for milk, wheat, and maize, and a ₹50 crore loan waiver for those facing land attachment, with the government covering 50% of the principal amount
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