Himachal facing financial crisis due to BJP govt’s fiscal imprudence: CM Sukhvinder Sukhu

Chief Minister Sukhvinder Singh Sukhu today charged the BJP with splurging Rs 5,000 crore on distributing freebies and subsidies to win the last Assembly elections, pushing the state into a severe financial crisis.

Replying to the debate on resource mobilisation under Rule 130 in the Vidhan Sabha today, the Chief Minister said it is due to financial mismanagement by the BJP that the state was today facing financial crisis. "Despite distributing freebies to industrial houses and opening educational and health institutions without any rationale, the people rejected you," he said. The opposition is plagued by infighting as there is a fierce struggle for political survival in the BJP which is divided into five factions.

"There was an investment drain during the BJP regime as a customised package was started and 5,000 bigha land was given to industry for a mere Rs 1 crore along with complete waiver in registration fee. The state's resources were given away at a pittance," he said. “As part of ‘vyavastha parivartan’ our government provided good governance, which is now showing good results in every department,” said Sukhu.

The Chief Minister said his government inherited a debt of Rs 76,000 crore from the BJP regime and had to raise loans to repay the old loans raised by the BJP government. “Your government got Rs 16,000 crore in five years as GST compensation while it has been reduced to a mere Rs 3,000 crore now,” he said.

"The Central Government barred our government from raising Rs 1,600 crore additional borrowings as we restored the old pension scheme (OPS). Also the revenue deficit grant (RDG) given by 15th Finance Commission has come down to a mere Rs 3,000 crore from Rs 10,000 crore during the BJP regime," he said.

The CM said his government will protect the interest of Himachal in all power projects. "We will hold talks on Kishau Dam only if the Haryana government agrees to give an affidavit on payment of Rs 4,400 crore pending BBMB arrears in court," the CM said

He said Himachal will become a self -reliant and most prosperous state by 2032. "Our government has taken several decisions like imposition of Rs 10 milk cess on every liquor bottle, cow dung was being bought for Rs 3 per kg and power subsidy had been surrendered by 23,000 people," the CM said. He said in the coming days the government will undertake rationalisation of all departments by merging some and also address the problem of top heavy structure in most departments.

Sukhu said during the previous BJP regime there was an income Rs 487 crore from renewal of liquor vends while in the last two years alone Rs 629 crore has been generated through auction of liquor vends.

Leader of Opposition (LoP) Jai Ram Thakur accused the Congress of making false guarantees to the people despite knowing the financial position of the state just to grab power. He said the RDG was given by the 15th Finance Commission, based on a formula for every government and not just Himachal.

He said the CM must offer solutions to address the grave financial position the state was facing rather than blaming the previous BJP regime. "When you were aware that GST compensation for all states would end in June 2022 and RDG would taper, then your government should have been better prepared than blame everything on us," Thakur said.