Himachal spends 17% Budget on loan interest, repayment

Shimla, March 6 (SocialNews.XYZ) Himachal Pradesh spends nearly Rs 17 out of every Rs 100 on loan interest payment and repayment, Chief Minister Jai Ram Thakur informed the Assembly on Friday

Out of every Rs 100 to be spent by the government in 2020-21, Rs 26.66 will be spent on salaries, Rs 14.79 on pension, Rs 10.04 on interest payment, Rs 7.29 on loan repayment and Rs 41.22 on development works and other activities, he said in his Budget estimates for 2020-21.

According to the Chief Minister, the government has managed fiscal affairs prudently.

"Our government has been successful in coordinating with the Central government in an attempt to get more funds under centrally-sponsored schemes and additionally securing new projects under externally aided projects," he said.

"The loan agreements in respect of externally-aided projects under negotiation will be signed in 2020-21 and new proposals will be sent to the government of India for its approval to pose them to the external funding agency," said the Chief Minister, who also holds the finance portfolio.

But he said the growth rate of the state's economy is expected to be 5.6 per cent during 2019-20 which is more than the estimated growth rate for the national economy for the same period.

Earlier, the BJP government had said there is financial liability of loans amounting to Rs 8,821.85 crore in the last two years, 2018-19 and 2019-20.

This amount includes Rs 3,669.74 crore as loans from open market and Rs 5,152.11 crore as amount paid on loan repayment.

This information was provided in the ongoing Assembly session in reply to a question of Leader of Opposition and Congress member Mukesh Agnihotri.

Also, the government has a liability of Rs 989.81 crore against the general provident fund. Tourism, horticulture and hydropower generation are major contributors to the state's economic development.

After laying of the Budget estimates for 2020-21, Agnihotri said the Budget was silent on financial assistance to the state from the central government that is led by Thakur's BJP.

"There is a huge gap in the mobilisation of resources. The Budget is also silent on the total debt of the state," Agnihotri added.

Source: IANS