Himachal Pradesh Minister Discusses State's Financial Struggles

By A Staff Reporter

Shimla: Amid concerns over the financial health of Himachal Pradesh, state Minister Vikramaditya Singh has outlined the government's plans to manage the situation while ensuring timely payments to state employees and pensioners. Singh confirmed that Chief Minister Sukhvinder Singh Sukhu has assured that all state government employees will receive their salaries on 5th September, with pensions set to be released on 10th September.

Singh explained that this decision was partly driven by financial calculations, noting, "The CM argued that delaying payments attracts a certain percentage of interest, resulting in a loss of Rs 36 crore yearly and around Rs 3 crore monthly. So, this decision was taken."

Acknowledging the ongoing financial challenges, Singh stated, "There is no denying that the financial status of Himachal Pradesh has not been good for the past 2-2.5 decades. We have taken loans from time to time and received support from institutions like the World Bank and Asian Development Bank, as well as the Centre."

He also pointed to a "little financial crisis" exacerbated by the reduction in revenue deficit grants but reassured that the government is taking significant steps to address the issue. Singh highlighted gains from the state's new Excise Policy and the imposition of water cess as positive developments. Additionally, he mentioned a new bill to legalize the farming of 'Bhang' (hemp), which he believes could be a "gamechanger" for the state's economy.

"Farming of 'Bhang' is not just for drugs but also for medicinal purposes, fabrics, and more. If grown legally, it will significantly increase the state's income in the time to come," Singh asserted. The minister's remarks reflect the government's multi-faceted approach to revitalize the state's finances and ensure stability.