Himachal, a hilly state known for its coldness, is currently making headlines for its “Economic Heat.” We need to have a look at some recent media reports to fully grasp what I mean when I refer to this “Economic Heat.” The first report is from “Dainik Bhaskar,” and it states that there is a salary crisis in the state since the treasury is empty. The report states that more than 15,000 state employees were unable to receive their salaries for the month of May due to the economic crisis.
Hindi newspaper Amar Ujala also published a report with headline “Himachal government’s coffers empty, employees of six corporations-boards did not get a salary”. The report further states that even after June 10, salaries for the month of May have not been paid to employees of six corporation boards, including HRTC, pump operators, daily wagers for Forest Corporation, and outsourced health workers.
On June 7, 2023, the online version of the English daily “The Tribune” published a story with the title ‘Himachal Government set to raise Rs 800 Cr loan for ‘development’. Additionally, various media portals have reported on this news.
The hilly state of Himachal Pradesh is currently facing an economic crisis, and the Congress government led by Chief Minister Sukhwinder Singh Sukhu is not likely to find an easy way out, according to the media sources. How severe this economic crisis is, can be gauged from the fact that Himachal Chief Minister Sukhwinder Singh Sukhu has spoken about bringing a ‘White Paper’ regarding the economic condition of the state. The Himachal Congress and the Chief Minister have been blaming the former BJP government for the state’s dire economic condition. Local BJP leaders are also taking up this issue on the front foot.
Few days ago, Chief Minister Sukhwinder Singh Sukhu, stated that the state owes more than 76 thousand crores in debt. However, the reality is that the current Congress government is finding it difficult to swallow the election-related announcements of “freebies,” as well as salaries for employees, pensions, and other perks. The development works are still in cold storage. Himachal’s economy has suffered enormously, and the circumstance has led to the state of economic overdraft.
Experts estimate that there is a loss of Rs 1000 crore in Himachal Pradesh and to remedy this loss, the Congress government is now preparing to take a loan of Rs 800 crore. It is noteworthy that for the development projects, Himachal Pradesh primarily relies on the central government. The two-decade trend record looks something like this. However, the situation has now taken a turn for the worse, in fact, the financial path of Himachal Pradesh has become more difficult.
One more jolt to the economy of Himachal Pradesh is that the central government also stopped providing a matching grant for the National Pension System to the Himachal Pradesh government. The central government has got its own reasons for this act of reduction. The Himachal government used to get Rs 1,780 crore as a pension from the central government for NPS. In accordance with the budget for 2023–2024, the state government is permitted to borrow money up to 3 per cent of the GDP.
Earlier, the state government was raising loans up to 6 per cent. Due to the non-availability of concession in this rule, now the path of the Himachal government is becoming increasingly difficult.
Perhaps Sukhwinder Sukhu’s government is now going to take a loan of Rs 800 crore to fulfill the promises made at the time of the elections. At the same time, this thing is also coming out that the government does not have the money to pay the salary of the employees and the pension to the pensioners. Due to this economic crisis, there is a lot of pressure on the government. Earlier, the Sukhu government, which came to power in December 2022, had taken a loan of Rs 3200 crore in the financial year 2022-23 and now after taking a new loan of Rs 800 crore again, Himachal will have a debt of more than Rs 76 thousand crore.
Economic analysts estimate that out of every 100 rupees spent by the Himachal Pradesh government, 26 rupees will go towards salaries, 16 rupees towards pensions, 10 rupees towards interest payments, 10 rupees towards loan repayment, 9 rupees towards grants to autonomous institutions, and 29 rupees towards other expenses, such as capital projects.
In addition to this, the budget included significant announcements such as giving Rs 1,500 per month to 2.31 lakh women, restoring the Old Pension Scheme, which would assist 1.36 lakh employees, and providing subsidies to support solar energy and other green initiatives. It is only inevitable that these costly announcements related to ‘freebies’ made by Congress during the elections will have a drastic impact on Himachal Pradesh’s economy as well. Perhaps that is why the Himachal government is now going to take a loan of Rs 800 crore.
‘Charvak’, a monster, is mentioned in chapters 38 and 39 of Mahabharat’s Shanti Parv. Charvak philosophy is also referred to as Nastik (Atheist) philosophy. The following verse, which is taken from the monster Charvak’s philosophy, is well-known:
यावत् जीवेत् सुखम् जीवेत्।
ऋणं कृत्वा घृतं पिबेत्।
भस्मिभूतस्य देहस्य पुनरागमनं कुतः।
Yavat Jivite Sukham Jivite
Rinam Kritva ghartam pibet
Bhasmibhutasya dehasya punragmanm kutah
Meaning: Enjoy your life as long as you have it. Borrow money yet consume ghee. How can the body return once it is turned to ashes?
This verse of Charvak’s philosophy fits perfectly with the present Congress government of Himachal Pradesh. Making announcements to entice people and hand out “freebies” is very simple, but it is very difficult to put them on the ground. Perhaps this financial crisis will make the Himachal government and the people of Himachal aware of this very fact. People of other states of India that is Bharat should learn from this episode of the economic crisis in Himachal Pradesh.
