HP's debt a continuous problem, govt trying to recover: Vikramaditya

HP Minister Vikramaditya Singh addressed the state's financial crisis, calling the debt a 'continuous problem' that has reached 1 lakh crore. He said the stoppage of the Revenue Deficit Grant has exacerbated the situation for the state.

State's Mounting Debt a 'Continuous Problem'

Himachal Pradesh Minister Vikramaditya Singh on Wednesday addressed the state's ongoing financial challenges, noting that the debt situation is not new but has been building over successive governments. Speaking to ANI, Singh said, "The financial situation of the state is not new. It has been a continuous problem of debt. This is a matter of concern for all of us. With the Revenue Deficit Grant (RDG) closed, the state has faced increasing difficulties. Our government is making every effort to overcome this situation as quickly as possible."

Elaborating on the details, the minister added, "Look, the state's financial situation is not a recent development. The debt condition has been building up; it was 45,000 crores, then reached 75,000 crores during their (previous) government, and today it has reached 1 lakh crore. This is a matter of concern for all of us. Additionally, the RDG (Revenue Deficit Grant) has stopped, which has created this situation in the state. Our government is making every effort to emerge from this soon."

'Deferment a Necessary Step, Not Political'

Singh clarified that the deferment of payments to MLAs and officials was a necessary step given the fiscal constraints, emphasising it is not politically motivated. He said, "Steps are being taken to improve the financial situation. However, this is merely a deferment in the state, and it's not the first time. During the COVID period, even when there was no such financial condition, the salaries and other payments of MLAs and officials were deferred for three to four months. It's not that they won't get it; as soon as our situation improves, this is a liability on the government that will have to be paid back. This is not a decision taken from a political perspective. It's done keeping in view the state's financial situation and also symbolically to show that we are all united in this financial crisis and will move forward together."

CM Sukhu Accuses BJP of 'Mere Politics'

Earlier today, the Chief Minister of Himachal Pradesh, Sukhvinder Singh Sukhu, accused the Bharatiya Janata Party (BJP) of failing to support the state on the issue of Revenue Deficit Grant (RDG), asserting that the opposition was indulging in "mere politics" instead of standing with the people of the state. "The BJP is only doing politics. They did not stand with the people of Himachal Pradesh on the Revenue Deficit Grant, which was the rightful claim of the state," Sukhu said while addressing reporters in Shimla.

On the state's financial condition, the Chief Minister said his government was making sustained efforts to strengthen the economy and had already begun seeing positive results. "We are committed to improving the financial health of the state and moving towards self-reliance," he said.

Politicisation of Panchayat Polls

Targeting the BJP further, Sukhu alleged that the opposition was politicising the issue of Panchayat elections. He reiterated that elections to Panchayats and urban local bodies would be conducted before May 31, in line with legal and constitutional provisions. "We have already clarified this in the Lower House and also in view of the High Court's decision," he said.

Alleged Irregularities in Himcare Scheme

The Chief Minister also referred to alleged irregularities in the Himcare scheme, claiming that an internal audit had pointed to a scam of around Rs. 110 crore. "We will bring the truth before the public," he asserted, while adding that the government was working to improve and streamline the scheme rather than shutting it down.

Fiscal Discipline for Long-Term Strength

Sukhu further said that fiscal discipline measures being undertaken by the government should not be misconstrued as budget cuts, but rather as steps aimed at strengthening the state's economic foundation.

Reaffirming his government's commitment, Sukhu said, "The decisions we are taking today will strengthen the economy of Himachal Pradesh in the long run."

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)