Former Himachal CM Thakur accuses govt of fiscal mismanagement

Former Chief Minister and Leader of the Opposition Jai Ram Thakur has launched an attack on the state government, alleging that the Congress administration has shown “financial indiscipline” and failed to stabilise the state’s economy despite nearly three years in power. Speaking to the media on Thursday, he said the government’s handling of the state’s finances reflects a “visionless and directionless” approach.

Thakur expressed deep concern over Himachal Pradesh’s worsening fiscal position, warning that the state’s outstanding debt is likely to touch Rs 1.10 lakh crore. He described this as an alarming figure for a small hill state with limited revenue sources. Citing official estimates, he said the debt-to-GSDP ratio is projected to surpass 40 per cent, which could make Himachal the third-most indebted state in the country in relative terms. This figure, he noted, is not only far above the 15th Finance Commission’s recommended cap of 36 per cent but also significantly higher than the estimated national average of around 28.8 per cent for 2025.

According to the Opposition leader, the impact of poor financial management is now visible in day-to-day governance. He alleged that delays in disbursement of salaries, pensions, medical reimbursements and contractor payments have become routine. Thakur further claimed that funds for key social welfare programmes such as Himcare and Shagun are not being released on time, leaving beneficiaries in distress.

He also criticised the state’s excise policy, arguing that it has failed to generate the revenue the government had projected, thereby widening the fiscal gap. Thakur said the government must urgently strengthen resource mobilisation, boost revenue generation and plug leakages to protect development works and welfare schemes.

Warning of serious consequences, he said without immediate corrective steps, Himachal risks slipping into a “deep financial crisis”.