Aimed high, but missed mark
Virbhadra Singhled Congress government completes four years in power on Dec 25. The fouryear rule was turbulent, with the CM, under fire over corruption charges, fighting legal battles. Though the state’s economy took a hit, there was slight improvement
industry FAILS TO ATTRACT INVESTORS
Contrary to promises made by chief minister Virbhadra Singh, the industrial sector in Himachal Pradesh failed to attract sufficient investments. Officials of the state industries department travelled across the country, meeting potential investors, but corporate houses seemed reluctant to invest in the state. At the investors meet organised in October 2015, Himachal received 41 new proposals, with investments worth ₹4,100 crore cleared.
Pegging the industrial investment at ₹19,000 crore in the state with over 41,000 small and big industrial units, the government claims industrial employment to be 3 lakh — hardly an improvement over the past few years.
The state has worked upon improving the state ranking for ease of doing business. Last year, the state was at 17th place. Although it failed to improve the ranking, it succeeded in improving its performance on various parameters. As compared to 23 points the state received last year, the score stood at 70 this time.
education PRIVATE SCHOOLS FLOURISH
Himachal Pradesh has the second highest literacy rate in the country. Yet the poor results in government schools have spoilt its reputation, drawing sharp criticism. Declining results in government schools has resulted in exodus of students to private schools.
Enrolment in private schools has increased from 11% in 2012 to 45% in 2015. Studies estimate enrolment in private schools to reach 59% in 2021, even as the chief minister, who holds the education portfolio, announced setting up of 146 new schools in the state. Even as the government lived up to its promise of providing laptops to meritorious students and cheaper education loans, students have been at the receiving end with 1,400 contract computer teachers on strike for the past six months, demanding regularisation of jobs.
economy POPULISM WEIGHS HEAVY ON POCKET
Chief minister Virbhadra Singh, who also holds the finance portfolio, stuck to populism rather than being pragmatic in strengthening the poor economy of the state.
Despite the central government’s grant for containing revenue deficit, the financial position of the state is deteriorating.
The state budget witnessed 50% increase over four years — ₹32,593 crore for current fiscal — but committed liabilities also surged by 37%. In 2013-14, ₹16,000 crore of the total allocated ₹21,767 crore was to be spent on salaries, pension, interest repayment, loan repayment and other loans and maintenance. For the current fiscal, this estimate is of ₹21,318 crore. These liabilities are 67% of the total budget. Although the state revenue has also increased from ₹17,700 crore to ₹26,270 crore, no check on expenditure means the state will always have to face deficit in budget.
health POSITIVE INDICATORS
Himachal Pradesh won nationwide accolades for its health services, but acute staff shortage has adversely impacted health facilities, particularly in remote and far-flung areas.
HP became the first state in the country to set up a health commission. The panel made numerous suggestions to improve health services, but these are just gathering dust. On an average, one health institution in the state serves nearly 2,500 persons, which is better than many other states.
Prioritising health sector, the government allocated 60% additional budget for improving health services. Himachal has over 2,700 health institutions, but several of these in rural areas have been running without skilled staff and medical aid. Against the sanctioned strength of 19,000, about 5,000 posts, including of 400 doctors, are vacant.
Himachal can boast of highest per capita spending on health (₹26,000) but people still have to rush to big health institutions as civil hospitals are without adequate facilities.
The state’s two premier health institutions – IGMC, Shimla, and Rajendra Prasad Medical College, Tanda – remain overcrowded.
agriculture TRADITIONAL FARMING TAKES HIT
Even though the Congress government talked a lot about strengthening the rural economy, farmers in the state were given a raw deal. The share of primary sector agriculture and horticulture has declined.
The area under cultivation has not seen any significant increase either. Inadequate irrigation facilities and poor marketing infrastructure has limited the growth of farm sector. Despite several efforts by successive governments, the area under irrigation has not increased by more than 30%.
What is adding to the woes of farmers is the increasing menace of wild animals.
socialsector GOVT GOES INTO OVERDRIVE
The Congress government has been compassionate towards senior citizens, differently abled and widows. The government had promised to increase social security pension from ₹450 to ₹600 in five years, it has already been enhanced to ₹650.
The persons above 80 years of age and those above 70% disability are provided pension of ₹1,200 per month. Currently 3,63,921 persons are being provided social security pension.
The government recently fulfilled a pre-poll promise by hiking pension of 1.5 lakh beneficiaries, burdening the state exchequer with ₹100 crore. Himachal has also made provisions encouraging people to marry disabled boy or girl having not less than 40% disability.