The state faces severe fiscal issues, marked by high debt and deficits, sparking political tension between the Congress and BJP
The state’s debt has surged from 37% to 42.5% of GSDP in just 3 years. It now has the second-highest per capita debt in India
Himachal's fiscal deficit rose from 4.05% of GSDP in 2021-22 to 6.4% in 2022-23, with ongoing high deficits affecting the state’s financial stability
Revenue expenditure accounts for around 90% of total spending. The state struggles with low revenue generation and high subsidy costs
The state is considering rolling back subsidies to improve finances, but this approach may not suffice without broader fiscal reforms
To avoid a crisis, states must rationalise expenditure and improve fiscal management. Rising debt and deficits threaten long-term economic stability