📷 Image: Wikimedia Commons / UnpetitproleX
Business
Himachal Pradesh’s debt crosses Rs 1 lakh crore, squeezing development spending, CAG says
✍️ PSU Watch
🗓 04 Sep 2026, 03:18 AM
👁 4
The Comptroller and Auditor General reports that Himachal Pradesh's total debt has risen above Rs 1 lakh crore, tightening the state's ability to fund development projects.
The Comptroller and Auditor General (CAG) has highlighted a sharp rise in Himachal Pradesh's fiscal burden, with the state's total debt now exceeding Rs 1 lakh crore. The audit points to a deepening fiscal stress that limits the government's capacity to meet its development commitments.
According to the CAG findings, the surge in debt has forced the state to curtail its development expenditure. Allocation for infrastructure, health and education projects has been squeezed as a larger share of the budget is diverted to debt servicing.
Revenue inflows from taxes and non‑tax sources have not kept pace with the mounting liabilities, widening the fiscal deficit. The CAG has urged the Himachal administration to adopt stricter fiscal discipline and explore additional revenue measures to restore fiscal health.
State officials are expected to present a corrective plan to the legislature, focusing on rationalising spending, improving tax collection and seeking central assistance to alleviate the debt pressure.
According to the CAG findings, the surge in debt has forced the state to curtail its development expenditure. Allocation for infrastructure, health and education projects has been squeezed as a larger share of the budget is diverted to debt servicing.
Revenue inflows from taxes and non‑tax sources have not kept pace with the mounting liabilities, widening the fiscal deficit. The CAG has urged the Himachal administration to adopt stricter fiscal discipline and explore additional revenue measures to restore fiscal health.
State officials are expected to present a corrective plan to the legislature, focusing on rationalising spending, improving tax collection and seeking central assistance to alleviate the debt pressure.