The state government, facing a dire financial situation amid the natural disaster, is going to take a loan of ₹200 crore. This loan amount will be taken for a period of 6 years, and will be repaid by October 29, 2031. The auction process will be completed on October 28, and the amount will be deposited in the government account on October 29. Thus, after taking the ₹200 crore loan, Himachal Pradesh will have a debt burden of approximately ₹1,01,775 crore.
This increasing debt burden on the state is not a good sign for the future. However, despite the adverse circumstances, the state government released a 3% DA installment to employees and pensioners on Diwali. The state government has been given a loan limit of ₹7,000 crore until December. Thus, after taking the ₹200 crore loan, the loan limit will be reached at ₹6,900 crore. After this, the government will have to survive on a ₹100 crore loan until December.
Due to the adverse financial situation, the state government has been continuously demanding an increase in its borrowing limit from the central government, but the central government has not yet granted any concessions. Currently, the government has to meet committed liabilities of approximately ₹2,800 crore per month. This includes ₹2,000 crore for salaries, ₹800 crore for pensions, ₹500 crore for interest payments on previously taken loans, and ₹300 crore for repaying the principal amount of the total debt.
