Shimla News
Himachal Pradesh’s debt increased to Rs 86,589 crore by March 31, 2023, pending liabilities of employees worth Rs 10 thousand crore
The measures being considered include reducing petrol expenditure on government vehicles, which is expected to contribute significantly to cost cutting.
Shimla, July 24: The Sukhu government of Himachal Pradesh has announced a plan to rationalize the number of officers and employees in various government departments to curb wasteful expenditure and improve the financial health of the state. This decision was taken in a meeting of the resource mobilization committee chaired by Deputy Chief Minister Mukesh Agnihotri.
The committee meeting focused on increasing income and reducing unnecessary expenses and suggestions were made for discussion in the upcoming state cabinet meeting. An important concern during the meeting was the financial condition of the state, where every citizen has a debt of more than Rs 1.16 lakh. After Arunachal Pradesh, Himachal Pradesh is also facing a serious debt crisis, where loans are being taken even to pay interest on existing loans.
Cabinet sub-committee member and minister Rajesh Dharmani stressed the need to take tough decisions to overcome the state’s financial problems. Dharmani said, “A large part of our budget is spent on paying loan installments and interest. The government structure should be like a pyramid, but at present it looks like an inverted pyramid.” He said that the number of category one gazetted officers has increased by 62 percent from 2006 to 2022. There is a plan to reduce the number of officers of this category and focus on increasing field and lower level employees.
The meeting also revealed alarming figures about the state’s debt, which has risen to Rs 86,589 crore by March 31, 2023. In addition, employees’ liabilities of Rs 10 thousand crore are pending. The reduction in revenue deficit grant from the Centre has further worsened the situation, the state had received Rs 40,624 crore from the 14th Finance Commission, which was reduced to Rs 37,199 crore in the 15th Finance Commission. The grant for the financial year 2021-22 was Rs 10,249 crore, and is projected to be further reduced to Rs 3,257 crore by 2025-26.
To tackle these challenges, the state government has constituted a resource mobilization sub-committee headed by deputy chief minister Mukesh Agnihotri. The committee comprises agriculture minister Chander Kumar, industries minister Harshwardhan Chouhan and town planning minister Rajesh Dharmani. The sub-committee has been tasked with devising strategies for resource mobilization and streamlining expenditure.
Among the measures being considered is a reduction in petrol expenses of government vehicles, which is expected to contribute significantly to cutting costs. By focusing on rationalising the workforce and reducing operational expenditure, the government aims to create a more sustainable financial model.
As Himachal Pradesh gears up for these stringent measures, the government hopes that rationalising the workforce and cutting operational costs will pave the way for a more sustainable economic future. The success of these initiatives will be crucial in moving the state out of its current debt crisis and towards a more stable and prosperous economic position.
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