Himachal’s high debt-GSDP ratio makes poll freebies a tough ask

Though more prosperous than other states, it has high debt-GSDP ratio

- INDIVJAL DHASMANA

Himachal Pradesh will vote on November 12 for 68 legislative Assembly seats to choose its next government.

Regardless of the state's Assembly size, the upcoming elections have much at stake for both the Congress and the ruling Bharatiya Janata Party (BJP) as a third force is also trying to make its presence felt. It will be interesting to see whether the tradition of alternate rule between Congress and BJP break this time, or whether the Aam Aadmi Party (AAP) will make a mark in another state. Himachal Pradesh goes to the polls on November 11.

The state, which ranks 21st in terms of population and 18th in terms of area in the country, is more prosperous than most states.

However, it has a huge debt-GSDP (Gross-State Domestic Product) ratio. For instance, its outstanding liabilities constituted or are projected to constitute over 40 per cent of its GSDP in 202021, 2021-22 and 2022-23. This is higher than 36.8 per cent in 2017-18 which was mostly ruled by the previous Virbhadra Singh government. The ratio stood at 37.6 per cent in 2016-17.

This may make poll promises such as 1,000 to every woman above 18 years of age as made by the AAP, free electricity up to 300 units to household consumers and ₹1,500 to poor women by the Congress, a tricky task to fulfil.