The government raised a loan of Rs 900 crore for development for the first time in 2025-26

The Himachal government entered into a loan of Rs 900 crore in the new financial year 2025-26 to meet the development needs. The Department of Finance has issued a notice to take a loan for the first time in this financial year tomorrow, which will be repaid by ten years to April 4, 2035. The government gave the goal of using the amount for the development program behind loans. In terms of section 293 (3) of the Constitution, the central government requested permission before applying for loans. Apart from the need for development funds, the largest dedicated liability of the state government is the salary and pension bill of its employees. The government entered into a loan of Rs 29,046 crore in 2024-25. Chief Minister Sukhwinder Singh Sukhu said that from Rs 29.046 crore only Rs 8.693 crore was spent on development and that the rest of the money had entered into loans and interest by the previous BJP government. The annual financial liability of salary and pension of working and retired government officials is about Rs 30,000 crore. The current financial year is likely to be difficult for the state government as the Revenue deficit award (RDG) will be reduced from Rs 6,258 crore to Rs 3,257 crore in 2024-25. The remuneration of goods and services (GST) ended in June 2022, and there was no hope of additional income. The Himachal government, which is struggling with cash shortage, faces an uncertain financial situation with very few resources of resource creation. The chief minister, although they submitted a budget of 2025-26, said that out of every 100 rupees only 24 rupees for development would be spared, because for payment of 25 rupees, for payment of salary, 20 rupees would be spent on pension, Rs 10 on loan payments to award to autonomous bodies. Share this story -tags