Notwithstanding the states precarious financial condition, the Himachal Pradesh Government is striving to maintain the pace of development in the state. The is committed to enhance the state’s own Resources and ensuring that the lack of funds does not hinder the state’s progress, said the Chief Minister Sukhvinder Singh Sukhu on Sunday.
Despite inheriting a substantial debt of Rs 75,000 crore from the previous BJP Government and facing financial restrictions on restoring the old pension scheme from the Union Government, the State Government is actively focused on resource mobilization, he said.
The Chief Minister said that the State Government has initiated several measures to generate additional revenue for the state exchequer, including seeking a larger share in power projects of Central PSUs that have recouped their costs. The government has also conducted auctions for liquor vends, resulting in an additional 40 per cent revenue for the state coffers, he said.
Sukhu pointed out that the Centre has imposed a ceiling on new proposals for external assistance through external aided agencies from Himachal Pradesh, which will be in place for three years from 2023-24 to 2025-26. By the end of the financial year 2025-26, Himachal Pradesh will only be eligible for approval of proposals up to Rs 2,944 crore from the Government of India, he added.
He said that the State Governments decision to reinstate the Old Pension Scheme (OPS) for the government employees has led to a deduction of Rs 1,779 crore from the borrowing ceiling for the financial year 2022-23.
Additionally, the limit of open market borrowing has been reduced by around Rs 5,500 crore as compared to the previous year. The State Government has obtained authorization for borrowing Rs 4,259 crore until December 2023, and it is expected to receive authorization for around Rs 8,500 crore.