Berthin/Bilaspur – Himachal Pradesh’s financial stress has deepened amid shrinking central grants and structural revenue constraints, pushing the state towards greater reliance on loans to run its administration. With nearly two-thirds of its land classified as forest area and few avenues for expanding its tax base, the state’s dependence on borrowing has become a major concern for both the government and the opposition.
Against this backdrop, Chief Minister Sukhvinder Singh Sukhu on Thursday claimed the present state government has repaid more money than it borrowed during the last three years. Addressing a public meeting at Barthin in the Jhandutta Assembly constituency of Bilaspur district, he said the state took loans worth ₹23,000 crore but repaid ₹26,000 crore towards principal and interest.
Sukhu said the present government inherited over ₹50,000 crore in liabilities, including loans, from the previous BJP government. He alleged that large sums were spent for political gains rather than strengthening the state’s financial position, pushing Himachal deeper into debt.
Referring to the Centre’s role, the Chief Minister called February 1 a “black day” in Himachal’s history, alleging that the Central Government stopped annual grants of nearly ₹10,000 crore that the state had been receiving for decades under constitutional provisions. He said the decision could lead to a loss of nearly ₹50,000 crore over five years, further worsening the state’s debt situation. He questioned BJP MPs and MLAs for not raising the issue in Parliament.
Sukhu said the Congress government has tried to address the debt challenge by creating new sources of income and curbing corruption, while continuing welfare schemes and development works. He said despite financial constraints, the government has maintained fiscal discipline and ensured that public support programmes are not compromised.
Reiterating his stand on the Old Pension Scheme (OPS), the Chief Minister said there was pressure to withdraw it, but the government stood firm. He alleged that the Centre stopped ₹1,600 crore in assistance after OPS was implemented, adding to the financial strain. He assured that OPS would continue as long as there is a Congress government in the state.
The Chief Minister also criticised the Agniveer scheme, questioning employment security for youth after four years of service. He said while the state government is making efforts to provide jobs, central policies have reduced long-term employment opportunities.
On disaster relief, Sukhu said central teams assessed losses at ₹9,300 crore, but the issue was not adequately raised by BJP MPs in Parliament. He said the state government increased compensation for fully damaged houses from ₹1.5 lakh to ₹7 lakh without waiting for demands. Monthly rent assistance of ₹10,000 in urban areas and ₹5,000 in rural areas was also provided to affected families.
He also accused the BJP of attempting to destabilise the elected government, stating that despite political turmoil and the exit of nine MLAs, the Congress returned to a strength of 40 MLAs in the Assembly with public support.
