Himachal's fiscal deficit up, poses new challenge to Cong govt

Despite the ambitious goal set by Chief Minister Sukhvinder Singh Sukhu for Himachal Pradesh to become self-reliant by 2027, financial difficulties seem to be mounting each year.

- ASHWANI SHARMA

SHIMLA:

As the Congress government's term progresses, these financial difficulties are exacerbating, potentially threatening the state's ability to fund development projects necessary for sustaining growth and infrastructure development.

A report of the Comptroller and Auditor General of India (CAG) for 2022-2023 tabled in the state Assembly on the last day of the winter session at Dharamshala on Saturday painted a grim picture.

The gap between the expenditure and the total non-debt receipts has increased substantially in past five years. It has resulted in the fiscal deficit increasing to Rs 12,380 crore, almost 6.34 per cent of the Gross State Domestic Product (GSDP), which was Rs 3,512 crore in 2022-23.

The revenue receipts of the state are up by 2.09 percent but show a notable fall from 21.17 in 2021-22 to 19.49 in 2022-23.