Himachal Pradesh raises Rs 1100 Cr debt to pay loans

Shimla: Bleeding state finances to pay for having lived beyond ones means, the Himachal Pradesh government with permission from Reserve Bank of India has been raising debt to meet committed liabilities which include paying off loans raised earlier.

A spokesman of the finance department declared that with prior permission from Reserve Bank of India (RBI), the Himachal Government had take a loan of Rs 1100 crore through RBI itself.

The state has to foot a loan of Rs 1000 Crore in the first four months of the financial years, said the official spokesman. This constitutes more than 60 percent of the state’s financial liability for the year, he added.

The Himachal Government was endeavouring to enhance its resources and matter for releasing of arrears from BBMB was being taken up vigorously.

The finance department official claimed that the financial condition of the state would start improving from the month of July as Himachal would be getting special grant of 13th Finance Commission from Government of India.

Rubbishing media reports that the state was passing through a financial crunch, the spokesman said that Planning Commission had approved the 2013-14 Annual Plan for Rs 4100 crore, which was Rs. 400 crore more than the previous year and it clearly indicates that there were no financial constraints for carrying out developmental activities.

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, he stated.

The government was making efforts to increase non-tax revenue without imposing any tax which would soon bring fruitful results, he claimed.

As Editor, Ravinder Makhaik leads a team of media professionals at Hill Post. Spanning a career of over two decades in mass communication, as a Documentary Filmmaker, TV journalist, Print Media journalist and with Online & Social Media, he brings with him a vast experience. He lives in Shimla.

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