70% loans spent on repayment of debt taken by BJP govt, says CM

Chief Minister Sukhvinder Singh Sukhu today said that 70 per cent of the loans taken by his government had been used to repay the debt raised by the previous BJP government, leaving very little money for development.

Sukhu, while addressing mediapersons after presenting the Budget, said that of total Rs 29,046 crore loans his government had raised, only Rs 8,693 crore could be utilised for development, as Rs 20,353 crore was used for interest and debt repayment. “It is because of the imposition of strict conditions on raising of loans and funds under externally-aided projects that Himachal is getting economically neglected,” he alleged.

He said that even today 80 per cent of the state’s population was residing in villages, so there was need to strengthen the rural economy. “Despite an economic crisis, we have tried to present the best-possible Budget and provide something to every section of society,” he added.

Sukhu said, “The Revenue Deficit Grant (RDG) has come down to Rs 3,257 crore in 2025-26 from Rs 6,258 crore last year and it will compound our problems.” He added that Himachal was awaiting the release of Rs 9,000 crore Post Disaster Need Assessment relief for losses suffered during the monsoons in 2023 and over Rs 9,000 crore of contributions of government employees covered under the New Pension Scheme lying with the Central Government.

He said, “We are working towards making Himachal self-reliant and our government has adopted zero tolerance towards corruption.” He added that efforts were being made to generate resources and Rs 3,000 crore additional revenue had been generated.

“It is after political discussions that our government will take a call on the issue of the United Pension Scheme (UPS),” he said in response to a question regarding switching over to the UPS from the Old Pension Scheme.