The Newz Radar
SHIMLA: In the wake of an ongoing financial crisis, the Sukhvinder Singh Sukhu-led Congress government in Himachal Pradesh continues to rely on borrowing to sustain its operations as it is gearing up to secure another loan of Rs 1,000 crore.
Out of this sum, Rs 500 crore will be borrowed for a 10-year term, while the remaining Rs 500 crore will be taken for a period of 15 years. The government intends to auction the security for the loan through the Reserve Bank of India (RBI) on January 16, with the loan funds anticipated to reach the government treasury on January 17.
The move follows a trend of successive loan acquisitions by the Sukhu government over the past few months. In December, the government secured a loan of Rs 1,200 crore, preceded by loans of Rs 800 crore in November and Rs 1,000 crore in October. With this impending loan, the state government’s debt is set to escalate to approximately Rs 80,630 crore.
Congress in BJP’s footsteps
The Congress during its opposition days criticised the former BJP government for its borrowing practices. However, with the Congress now in power, it seems to be following a similar trajectory of accumulating loans. Chief Minister Sukhu, while acknowledging the precarious financial state of the state, has often blamed the previous government for exacerbating the economic conditions. He contends that the Jai Ram Thakur government left behind liabilities totaling Rs 75,000 crore, including employee-related dues amounting to around Rs 11,000 crore. In response, the BJP has intensified its criticism of the Congress government for its persistent reliance on loans and pointing to what they perceive as a lack of fiscal responsibility.
