Shimla, March 17(UNI) Himachal Pradesh's Chief Minister Sukhvinder Singh Sukhu has provided details regarding the state's loan situation and its financial management. As of today, the state has accumulated a debt of Rs 104,729 crore, with Rs 29,046 crore borrowed in the last two years. Out of this, Rs 8,093 crore has been allocated for developmental works.

Presenting the 2025-26 annual budget estimates, the Chief Minister stated that a significant portion of the borrowed funds—around 70 percent—has been used for repaying interest and clearing previous loans. In the past two years, the state government has repaid Rs 12,266 crore in interest and Rs 8,087 crore in loan payments.

The Chief Minister further explained that the state's loan burden increased from Rs 75,683 crore to the current level. For the financial year 2023, the state borrowed 3.5 percent of its GDP, and it is expected to borrow about 3 percent in 2025-26.

In line with India's Fiscal Responsibility and Budget Management (FRBM) Act, the state government plans to borrow only Rs 6,051 crore in 2024-25, in adherence to these fiscal rules. The state has also generated additional revenue of Rs 712 crore from VAT and another Rs 145 crore from levies and taxes.

Sukhu projected the state's economy to grow by 5percent this year, with per capita income expected to rise to Rs 2.57 lakh. He also announced several measures to benefit the state’s agricultural sector, including increased Minimum Support Prices (MSP) for buffalo milk, cow milk, natural wheat, and maize. Additionally, the government will provide a loan waiver for people facing land attachment, totaling Rs 50 crore, and will contribute 50 Percent of the principal amount for this waiver.

These actions reflect the state's approach to managing its finances while also prioritizing development and economic growth.

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