Each Himachal resident under ₹65,444 debt: CAG report

SWIFT RISE The per capita debt increased by 14% (₹7,802) in the last one year

SHIMLA: In an indictment of fiscal management during the previous Congress government, the Himachal Pradesh government auditor pointed out that per capita debt liability of the state surged from ₹43,726 in 2012-13 to ₹65,444 in 2016-17, an increase of approximate 50%.

The findings were revealed in a report of the Comptroller and Auditor General (CAG) of India, which was tabled by Himachal Pradesh chief minister in the state assembly on Thursday.

The report added that per capita debt rose swiftly in one year and increased by 14% (₹7,802).

The hill state is facing a fiscal crisis as more than one-third of the market loan goes into servicing of the previous debt.

The report highlighted the poor fiscal position of the state and said 9% (₹3,096 crore) of the public debt was payable in the next year, 31% (₹10,008 crore) in the next one-five years and remaining 60% (₹19,466 crore) in more than five years. This can well prove to be a problem for the government budget during that period.

“The hill state is required to pay 55% debt within seven years, which is not a comfortable position to be in,” added the CAG.

The CAG painted a grim picture and revealed that public debt increased from ₹20,765 crore in 2012-13 to ₹32,570 crore in 2016-17 and registered an annual average growth rate of 10.85%. During 2016-17, total public debt increased by 17% in comparison with the previous year.

The CAG report mentioned government using fresh market borrowings to meet past obligations. In spite of this, during 2016-17, government utilised 36% of the fresh borrowings for making re-payment of matured market loans, the report said.

Thus, payment of matured market loans from fresh loans was against the provisions of Fiscal Responsibility and Budget Management (FRBM) Act.