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Cash-strapped Himachal to raise ₹500 crore through govt securities
Himachal Pradesh plans to raise ₹500 crore through government securities to bridge a revenue gap created by the discontinuation of the Revenue Deficit Grant. The move comes as the state defers salaries for some elected representatives and officials and considers further borrowing, with the chief minister defending debt as GDP-linked. The opposition criticizes the borrowing as a sign of mismanagement.
Why It Matters
The borrowing highlights ongoing fiscal stress and rising debt in a state facing grant discontinuation, with potential impacts on public spending and services.
Timeline
7 Events
Salaries deferred for elected representatives and officials
May 9, 2026
The government had already decided to temporarily defer salaries from 20% and 50% of elected representatives and officials.
Plan to raise ₹500 crore via government securities
May 9, 2026
The government is set to raise a loan of ₹500 crore through government securities to manage the financial strain.
Total state debt reported
May 9, 2026
The article states the state's total debt has reached ₹1,10,500 crore.
CM goals and opposition critique
2026
Sukhvinder Singh Sukhu outlined aims for a self-reliant economy by 2027 and a prosperous state by 2032, while BJP spokesperson Rakesh Jamwal criticized the government, saying Congress policies have pushed HP to the brink of economic ruin.
Borrowing linked to GSDP and Centre norms
2026
The CM said that borrowing is a continuous process linked to the Gross State Domestic Product and regulated under norms set by the Centre.
Budget speech signals further borrowing
2026
Chief minister Sukhvinder Singh Sukhu, in his budget speech earlier in 2026, indicated the state may have to raise additional loans.
RDG discontinuation linked fiscal stress
2026
Discontinuation of the Revenue Deficit Grant (RDG) has contributed to significant fiscal stress in Himachal Pradesh, with the article noting it would burn ₹8,000–₹10,000 crore annually between 2026 and 2031.