Himachal Pradesh News
Himachal Pradesh Debt Pressure Mounts: ₹26,256 Crore Spent on Loans in 3 Years, Says CM Sukhvinder Singh Sukhu
The financial strain on Himachal Pradesh continues to deepen as Chief Minister Sukhvinder Singh Sukhu revealed that the state has spent a massive 26,256 crore on loan repayment and interest servicing over the past three financial years.
The financial strain on Himachal Pradesh continues to deepen as Chief Minister Sukhvinder Singh Sukhu revealed that the state has spent a massive 26,256 crore on loan repayment and interest servicing over the past three financial years.
The disclosure, made in the Assembly in response to questions raised by BJP MLAs, highlights the growing debt burden that is increasingly shaping the state’s fiscal priorities.
Debt Burden Tightens Grip on State Finances
According to the Chief Minister, after allocating funds toward debt servicing, the state was left with around 1.24 lakh crore for all other expenditures over the same period.
This paints a clear picture of how a significant portion of Himachal’s resources is being diverted towards managing existing liabilities rather than development.
Adding to concerns, the government also raised fresh loans worth 35,555 crore in the last three years, indicating continued reliance on borrowing.
Outstanding Debt Crosses ₹1 Lakh Crore
As of January 31, the state’s total outstanding debt has reached 1,01,863 crore — a figure that underscores the mounting financial pressure.
The situation is expected to become even more challenging in the coming years:
- Interest liability projected at 6,694 crore in 2025–26
- Likely to rise further to 7,272 crore in 2026–27
These projections suggest that debt servicing will continue to consume a large share of the state’s budget.
Government Steps to Boost Revenue
In an effort to stabilize finances, the Sukhu-led government has introduced several revenue-generating measures, including:
- Milk cess
- Green/environment cess on electricity usage
- Taxes on mining activities
- Charges related to electric vehicles
These initiatives aim to strengthen the state’s revenue base while balancing fiscal challenges.
Rising Salary Expenditure Adds to Pressure
The Chief Minister also highlighted the significant expenditure on government staff:
- 14,062 crore annually spent on salaries and allowances
- Around 1,172 crore per month for regular employees
For outsourced staff:
- 19 crore monthly expenditure
- 224 crore annually
He emphasized that agencies hiring outsourced employees must ensure salary payments are made by the 7th of every month, as per government guidelines.
Education Department Faces Staff Shortage
Meanwhile, Education Minister Rohit Thakur shared key insights into staffing within the department.
Out of 2,302 sanctioned posts of Senior Assistant:
- 1,243 positions are currently filled
- 1,059 posts remain vacant
Between January 2025 and January 2026, 120 clerks were promoted to Senior Assistant roles, offering some relief but still leaving a considerable gap.
What This Means for Himachal Pradesh
The data reveals a complex financial scenario where rising debt, increasing interest liabilities, and high salary expenditures are putting pressure on the state’s economy.
While the government has initiated revenue reforms, the coming years will be crucial in determining whether Himachal Pradesh can strike a balance between fiscal discipline and development needs.
