Himachal Pradesh Government to raise loan of Rs 1030 crore to meet development needs
The loan has been taken for a period of 20 years and will be returned on March 4, 2046
It is amidst a grave financial crisis that the Himachal Government decided to raise a loan of Rs 1030 crore to meet the development needs of the state.
A notification in this regard was issued by the Finance Department, yesterday.
The loan has been taken for a period of 20 years and will be returned on March 4, 2046. “Government of Himachal Pradesh hereby notifies the sale of Himachal Pradesh Government Stock (securities) of 20-year tenure for an aggregate amount of Rs 1030 crore (nominal),” the order read.
“The proceeds of the State Government Securities will be utilised for the development programmes of Himachal Pradesh. The consent of the Central Government has been obtained to the floatation of the loan as required by Article 293(3) of the Constitution of India,” the notification read.
With the 16th Finance Commission recommending discontinuation of Revenue Deficit Grant (RDG) of almost Rs 800 crore per annum, Himachal is facing severe economic distress.
The state government is finding it difficult to manage its expenditure, including committed liabilities of salaries, pensions, loan repayment and development works.
