Govt to raise Rs 800-cr loan for DA, works

Pratibha Chauhan

Tribune News Service

Shimla, February 23

With the financial year about to end, the state government has decided to raise a loan of Rs 800 crore to meet its developmental needs and pay dearness allowance (DA) to its employees.

The issue of mounting debt trap has been a major cause of worry for the successive governments with little resource mobilisation. While Rs 500-crore loan has been taken for a period of 10 years, Rs 300 crore is to be repaid in three years.

Sources said Rs 800-crore loan has been taken to pay the DA to 2.25 lakh employees ahead of the Lok Sabha elections. “The government will require more funds to dole out sops to woo the electorate,” said an official. The employees are a force to reckon with and the government is keen on paying them the DA along with this month’s salary.

The government had earlier raised a loan of Rs 500 crore each on January 5, 2019, and October 21, 2018. Then it raised a loan of Rs 3,500 in the current financial year and with the latest Rs 800 crore, the total figure will touch Rs 4, 300 crore, which is well within the fixed limit.

With the election code of conduct likely to be imposed any time in the near future, the government is unlikely to raise any more loans till March 31, when the financial year will end. The salary and pension liabilities of the government work out to be almost Rs 17,000 crore, which is a major chunk of the budget. Similarly, a sum of Rs 4,300 crore is paid as interest. The debt trap of the state has already crossed Rs 50,000 crore.

State already under Rs 50,000-crore debt

• The government had earlier raised a loan of Rs 500 crore each on January 5, 2019, and October 21, 2018. Then it loaned Rs 3,500 in the current financial year and with the latest Rs 800 crore, the total figure will touch Rs 4,300 crore
• The salary and pension liabilities of the state government work out to be almost Rs 17,000 crore, which is a major chunk of the budget. Similarly, a sum of  Rs 4,300 crore is paid as interest. Himachal is already under Rs 50,000-crore debt
• With the election code of conduct likely to be imposed any time in the near future, the government is unlikelyto raise any more loans till March 31