CAG report raps Himachal for rising debt crisis

The alarming debt crisis in the past few years in Himachal Pradesh has now invited the scrutiny and criticism of the Comptroller and Auditor General (CAG).

"The overall debt liability of the Himachal Pradesh government has more than doubled from Rs 8,621 crore in 2000-01 to Rs 17,432 crore ," says the CAG report tabled in the state legislative assembly late yesterday.

The report points out that the fiscal liabilities stood at 2.66 times of the revenue receipts, indicating the criticality of borrowings. The continued high interest payments indicated dependency on borrowings.

"The internal debt of the government has also increased from Rs 10,718 crore in 2004-05 to Rs 11,230 crore in 2005-06," the report says.

The government guarantees for raising loans to various state-run boards and corporations stood at Rs 3,587 crore in 2006, leaving very little for capital formation or asset creation.

The audit report has also expressed concern that the state finances were heavily dependent on central assistance, as it accounts for 67 per cent of the revenue receipts.