State Government said that government was well aware of its financial liabilities and there was no dearth of funds for carrying out developmental works. Spokesperson of state Govt said that Government was ensuring all-round development of the State and adequate budget had been provided to all the departments as per their requirements.

He said that Planning Commission had sanctioned Annual Plan of Rs. 4100 crore for the State which was Rs. 400 crore more than the previous year which clearly indicates that there were no financial constraints for carrying out developmental activities. He also clarified that available funds were not being spent lavishly but either on developmental works or on salaries, pension and interest which were committed liabilities of the State.

The spokesman said that the State Government had taken a loan amounting to Rs. 1100 crore through Reserve Bank of India with prior permission of the Government of India because State had to pay loans of more than Rs. 1000 crore during first four months of this year, which was more than 60 percent of total loan liabilities for the year 2013-14. The State Government would ensure that the loans were taken within the parameters fixed by the Government of India. He added that the State Government was overburdened with the loans as previous Government took excessive loans.

He said that Himachal Government was working hard to enhance its resources and matter for releasing of arrears from BBMB was being taken up vigorously. Besides, the financial condition of the State would start improving from the month of July this year as Himachal would be getting special grant of 13th Finance Commission from Government of India. He said that Government was making efforts to increase non-tax revenue without imposing any tax which would soon bring fruitful results.