State facing debt burden of over Rs 49,000 crore :

1. Himachal Pradesh is facing a debt burden of Rs 49,096 crore, Chief Minister Jai Ram Thakur informed the state Assembly.

2. The state’s debt burden was Rs 46, 385 crore in 2017.

3. The present government took a net loan of Rs 2,711 crore till July 31, this year. So, the debt burden has now increased to Rs 49,096 crore. 

4. The burden on the state was 19,977 and Rs 27,598 crores in 2007 and 2012, respectively.

5. The previous Congress government had taken a net loan of Rs 18,787 crore from 2013 to 2017 during its five years tenure.

 6. Of the total Rs 2,711 crore net loan taken by the current BJP government till July 31, this year, net loan of Rs 1,754 crore and Rs 957 crore was               taken in 2018-19 and till now in 2019-20 respectively. 

  7. Providing data of the last three financial years till July 31 this year, the CM reported a total loan of Rs 11,329 crore had been taken. Of which, Rs            6,517 crore was used for repaying the loan. So, the net loan during the last three financial years is Rs 4,812 crore.

Way Forward :

So there is a need to formulate a mechanism and funding pattern for providing special financial assistance  to Himalyan state like Himachal. An intensive study is required for that and  agencies like Finance commission and CAG would send some concerned experts to states before finalizing response mechanism and funding pattern.

However Himachal Pradesh has made credible progress in adhering to macro economic parameters.

Hydro electric is a major source of revenue for the state but its full potential could not be realized due to the fact that the centre does not recognise hydel projects beyond a certain threshold as renewable energy projects. Also huge progress has been made in the last ten years  to bring down the  GSDP ratio to  38 % but this this ratio is unsustainable.

A lot  more is required  to be done to further bring down the ratio to atleast  further 8 – 10 % by making debt reduction plan to reduce the debt atleast 1,200 crore or more. It cannot be done overnight  but medium term plan should be made to achieve fiscal deficit target.