Financial mismanagement pushing HP into debt trap: BJP

    Financial mismanagement pushing HP into debt trap: BJP


    Intensifying its attack on the Sukhvinder Singh Sukhu-led Congress government over the state of finances, the Bharatiya Janata Party (BJP) on Wednesday alleged that the dispensation was shifting responsibility instead of correcting its own fiscal mismanagement.

    BJP state co-incharge Sanjay Tandon accused the government of hiding its administrative and governance failures by unfairly blaming the Union government. (File photo)
    BJP state co-incharge Sanjay Tandon accused the government of hiding its administrative and governance failures by unfairly blaming the Union government. (File photo)

    BJP state co-incharge Sanjay Tandon accused the government of hiding its administrative and governance failures by unfairly blaming the Union government. He clarified that the discontinuation of the Revenue Deficit Grant (RDG) was not a sudden blow but a phased, pre-declared recommendation made by successive finance commissions.

    “If we compare Himachal with Uttarakhand—two hill states with similar geography and constraints—Uttarakhand has performed significantly better in revenue mobilisation and investment attraction. Meanwhile, Himachal’s revenue deficit and debt ratios have worsened sharply,” Tandon said, noting that the state’s debt-to-GSDP ratio has crossed the alarming 40% mark.

    Borrow and spend model under fire

    Echoing the concerns, state BJP president Rajeev Bindal said that the Congress government has pushed Himachal into a deep financial and law-and-order crisis. He characterised the current administration as a “borrow and spend” model that prioritises political appointments over fiscal discipline.

    “The government has appointed nearly 75 advisers, OSDs, and special appointees who enjoy high salaries, official vehicles, and residences, costing the exchequer crores,” Bindal alleged. He further pointed out that the state has engaged over 100 law officers and continues to hire expensive senior counsels for major cases, further straining the state’s limited resources.



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