10 Dharamshala, Saturday, December 16, 2017
cover story
Challenges Before New Government
Sunil Sharma
A new government will be formed in Himachal after
counting of votes for assembly elections is held on
December 18. Immediately after taking over the reins
of this hilly state, the new government will have to
face challenges at various fronts. Having meager
financial resources, this hilly state has accrued a debt
liability of Rs. 45000 crore. Both the political parties,
the Congress and BJP, have promised many things in
their election manifesto and vision document. The new
government, whichever party forms, will face a
Herculean task to undertake financial management
while implementing developmental schemes. The new
government will also have to work to resolve Himachal's
pending issues. There are various other challenges
staring at the new government like share in BBMB
projects, generating employment opportunities for nine
lakh youths, face the additional burden of
implementation of 7th Pay Commission
recommendation. The state government will have to
curb its wasteful expenditure besides generating
additional financial resources to meet the challenges.
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Challenges On Economic Front
� Himachal surviving on debt
� Debt ceiling of Rs. 3400 crore
� Utilised Rs. 3200 crore debt
� CAG has already warned
� Burden of 7th Pay Commission
Himachal's Financial Position
Himachal’s Revenue:
Salary Budget:
Pension : Rs 4950 Crore
Debt Liability :
Interest on Debt:
Dharamshala, Saturday, December 16, 2017 11
� Need to curb unproductive
expenditure
The new government in Himachal will face
the biggest challenge on economic front as
Major Challenges...
it will have to take steps to bring this
hilly state out of debt trap. As a result, it is Employment For 9 Lakh Unemployed
likely to effect state's progress. The
problems will further increase if Punjab
implements 7th Pay Commission
recommendations before 2019. Warning
issued by CAG are turning out to be true.
The CAG report of previous financial year
had warned that Himachal could fall into
debt trap if there is no financial
management besides curbing unproductive
expenses.
7th Pay Commission economically, yet it has a huge debt
liability of Rs. 45000 crore. It can have
Recommendations impact on developmental schemes also if
the Centre doesn't enhance relaxations.
Rs. 3400 Crore Debt Nobody can save the new government Himachal faced burden of Rs. 2500 for
implementing 6th Pay Commission
from economic crisis if steps are not taken
Limit to curb unproductive expenditure. recommendations. The state had urged
13th Finance Commission to compensate
Knowledgeable persons feel that the state
Reserve Bank of India has fixed a limit of will incur addition financial burden of Rs. besides seeking a special package from the
Rs. 3400 crore for Himachal for raising 3500 to Rs. 4000 crore after Centre.
loans. According to information, this hilly implementation of 7th Pay Commission
state has already utilised Rs. 3200 crore out
of this limit. The new government can face
recommendations. There is a pressure on
Punjab to implement it after the Union
Will Centre Help?
problems on economic front if the Centre Cabinet announced to implement
recommendations at 23.5% in 2016. The The Centre is unlikely to help this hilly
doesn't provide special financial package to state for implementing recommendations
Himachal. Congress government in Punjab is of 7th Pay Commission. The previous
preparing to implement the government had been demanding a special
recommendations and Himachal will have
Share In BBMB to follow the same line.This hilly state has
financial package after 6th Pay
Commission in 2006 but the Centre didn't Himachal faces a big problem of unemployment and a permanent solution could not be
been following Punjab for pay and help, though, it claims to help Himachal as
The matter regarding Himachal's share in allowances. found even through industrialisation. The new government faces a herculean task of
special category state. Will Modi taking steps for employment generation, providing employment through skill
Bhakhra Beas Management Board (BBMB) The Centre has also announced release government come forward to extend help
projects is also pending. The state will get a of arrears based on recommendation from economically weak state like Himachal? development and increasing the pace of industrialisation.
huge relief if this issue is settled at the January 1, 2016. Himachal will incur Will this hilly state curb wasteful
earliest. However, it's unlikely to happen as
reflected by postures adopted by
additional financial burden of nearly Rs
4000 crore, including Rs 1200 as arrears.
expenditure? Only time will tell. New Projects
Knowledgeable sources feel that
neighbouring states. The government will
also face the challenge to implement Punjab and Himachal also follow Centre Meager Resources The new government will also face the challenge of running AIIMS as the Centre has
also geared up for this big project in Himachal. Though all NOCs have been completed,
recommendations of 7th Pay Commission. that has prepared a plan for investment a
The government would like to appease the part of enhanced salary in different bonds The state's budget salary increased from yet there will be a challenge that there is no hurdle at state level. Buildings for medical
as it would ease out financial burden, both Rs. 5800 crore to Rs 9630 crore after colleges in Chamba and Sirmour are under construction, yet the government will face
big number of government employees as
2019 Lok Sabha elections will be held a at the Centre and states. However, recommendations of 6th Pay Commission. challenge to establish medical college in Hamirpur.
year after new government takes charge in Himachal will still face the challenge of Pension component has also increased
this hilly state. Punjab is already working
on this issue.
releasing arrears. Though 14th Finance
Commission has strengthened Himachal
from Rs 3300 crore to rs 4950 crore.
Himachal's revenue is Rs 7847 crore. Employees Transfer Policy
No government has shown seriousness in framing a transfer policy for government
Himachal Himachal is a employees even as different committees were constituted. The employees have been
Rs 7847 Crore As counting for votes seeking a stable transfer policy but they too are divided in different factions owing
will be held on has become developing allegiance to different political parties. No strong employee leader was visible during
Rs 9630 Crore
December 18, hollow on state and difficult past decade who could press the government to frame a concrete transfer policy.
In other words, employee leaders have been dancing to the tunes of government. Gone
Himachal This Week economic front as geographical are the days when governments used to buckle under pressure of employees' unity.
Rs 45000 Crore
it could not avail conditions pose Nearly three lakh government employees have no option but to run after MLAs and
Rs 3200 Crore talked to chief ministers for transfers. Work culture will improve, employees will not be politically
benefit of Centre's hurdles in its victimized and those running after MLAs and ministers will also have to work if a
ministerial candidates
financial assistance. Himachal is progress. We have been and will concrete transfer policy is framed.
of the BJP and
reeling under debt liability of Rs. generate resources to make Himachal
Congress to know 50,000 crore. After coming to economically self reliant. Roads, health, Self Reliance Must
their view points on power, we will generate resources to education besides horticulture and Himachal is a consumer state as people don't have enough resources as compared to
how to confront take this hilly state on the path of agriculture will remain priority sectors people in plains though apple producers are exception. The new government also faces
challenges before the development after coming to power again challenge to seek green bonus from the Centre in lieu of forest resources. In addition, it
will have to mount pressure for water cess on water resources on the pattern of southern
new government: -Prem Kumar Dhumal, BJP's CM candidate -Virbhadra Singh, Congress's CM candidate states getting royalty on coal.
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