Mukesh, CM in verbal duel over hike in loan limit

Shimla, August 13

The Congress today hit out at the BJP regime for bringing an amendment to the HP Fiscal Responsibility and Budget Management (Amendment) Bill (FRBM) 2022 to enhance the limit for raising loans.

A dig at govt

What is the need to purchase a bullet-proof car in Himachal? Why is the Chief Secretary being allowed to buy a vehicle worth Rs 50 lakh? Mukesh Agnihotri, LOP

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Fiscal deficit down

We brought fiscal deficit down to 2.7%. It stands at 2.9% in 2021-22. Since our borrowing limit has been fixed at 3%, we are making an amendment. Jai Ram Thakur, CM

It was during a discussion on the amendment in the House that Leader of the Opposition Mukesh Agnihotri accused the government of spending money on purchasing luxury vehicles, helicopters and holding mega events. “What is the need for purchasing a bullet-proof car in Himachal and the Chief Secretary is being allowed to purchase a vehicle worth Rs 50 lakh,” he said.

Agnihotri also accused the BJP regime of failing to seek a loan waiver or financial package from the Modi regime. “You make tall claims about a double engine government but please tell what extra has the Modi regime given to Himachal,” he said. He also accused the government of wasting huge amounts on BJP rallies and events, on advertisements and hoardings even at Delhi and Chandigarh airports.

The CLP leader said the BJP was pushing the state on the brink of bankruptcy, making it difficult for any government in the future to improve its financial health.

The CM defended the move to amend the FRBM Act, saying it was due to Covid that the global economy had taken a hit and HP, too, was affected. “Please accept that it is your regime which is responsible for the grim financial health of the state,”he said. He said the fiscal deficit in 2013-14 was 4.23 per cent which touched 4.70 per cent in 2016-17. “We managed to bring it down to 2.70 per cent and it stands at 2.99 in 2021-22. Since our borrowing limit has been fixed at 3 per cent, we are making an amendment,” said Thakur.

Finally, the amendment was passed by the House.