The state’s loan liability has significantly increased up to 13 percent at the end of the fiscal year 2014-2015 compared to the previous year; and to pay the debt interest, the government is taking more loan. After the hefty increment in the salary of ministers and MLAs, it is going to be even more difficult to pay the interest anytime soon for the state which is already incurring losses.
HP’s Principal Accountant General, Ram Mohan Johri, have expressed concern over this issue and raised the questions on this trend of repaying debts by borrowing more loan.
Ram Mohan Johri said the government should utilize the loan money on developmental activities instead of paying the interests incurred on the debt.He also expressed concern over the growing burden on the expenditure over salaries and wages.
Every year, the government is found taking loans from the market but not investing it over the developmental plans or over similar cases where the amount of the loan could make a profit.
Ram Mohan Johri, through the audit report, has put a question mark on the functioning of the Government as well. During the press talk, PAG Ram Mohan said that government’s deficit is growing every year.
Also, since this is against HP FRBM rule, the state may have to suffer much in the future.