In the budget speech, Chief Minister Prem Kumar Dhumal, who holds finance portfolio, said that the debt burden of Himachal Pradesh has increased to Rs.5,140.56 crore over the past four years, as in January 2008 it was Rs.20,173.14 crore and now it is Rs.25,313.70 crore.
Chief Minister loans from the government of India as on January 2012 was Rs.977.11 crore. The outstanding guarantees were Rs.3,793.54 crore as on January 2012. It was Rs.2,018.81 crore in January 2008.
Dhumal in his budget speech said the implementation of the Pay Commission recommendations had impacted the finances of the state.
“The erroneous recommendations of the 13th Finance Commission underestimating the committed liabilities of the state have further adversely affected the finances of the state. Had the commission given us an increase equal to that of the other states, the state would have received an additional transfer of Rs.10,725 crore in five years. We have urged the government of India to give us a special financial package of Rs.5,214 crore for two years to mitigate the impact of adverse recommendations of the finance commission,”
The chief minister said despite the financial constraints, the government has released financial benefits of over Rs.5,400 crore in the last four years to its employees.