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Parmar accuses state government of fiscal mismanagement, fund diversion

Alleges the situation is a “policy-driven crisis” and the state economy is witnessing “administrative chaos and fiscal imbalance”

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Vipin Parmar, Sullah MLA
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Sullah MLA Vipin Singh Parmar has accused the state government of pushing Himachal towards financial instability due to large-scale fiscal mismanagement and diversion of funds.

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Parmar, in a statement issued here on Thursday, said that the state’s economy was witnessing “administrative chaos and fiscal imbalance” under the present dispensation. He described the situation as a “policy-driven crisis” rather than a routine financial strain.

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He objected to alleged remarks against the Finance Commission and said, “Blaming constitutional institutions to cover up failures goes against democratic norms.”

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Parmar claimed that utilisation certificates of nearly Rs 10,000 crore related to Central grants were pending with the state, leading to delays in the release of funds. He alleged that discrepancies in documentation would amount to serious financial irregularities and funds meant for Centrally-sponsored schemes were diverted to other heads, including salaries and pension.

He alleged that around Rs 500 crore allocated for railway works had been diverted elsewhere. He cited Revenue Deficit Grant (RDG) figures and said that despite substantial assistance in 2022-23 and 2023-24, the state’s revenue deficit remained high.

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According to Parmar, Rs 510 crore in the education sector, Rs 216 crore in agriculture and Rs 150 crore in the family welfare department remain unspent, with more than 2,990 UCs pending in various offices.

He demanded a clear road map to curb wasteful expenditure, restore fiscal discipline and ensure transparency in financial management, warning that the public would otherwise hold the state government accountable.

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