Himachal's Debt Reaches ₹98,182 Crore, May Cross ₹1 Lakh Crore Soon
CM Sukhvinder Singh Sukhu Informs Assembly
Shimla, August 27, 2025 — Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu informed the state assembly that as of July 31, 2025, the state's total debt stands at ₹98,182 crore. For the financial year 2025–26, the government has allocated ₹4,243.57 crore for repayment of principal and ₹6,738.85 crore for interest payments.
In response to a question by Bharmaur BJP MLA Dr. Janak Raj, the Chief Minister clarified that the loan taken in July 2025 is being utilized for various developmental projects through the state budget. He added that the debt has been taken under a strategic long-term plan of 22 years to ease the repayment burden over time.
The CM emphasized that due to the state’s limited internal resources, it relies heavily on the central government for budgetary support. This dependency has increased significantly since the implementation of GST on July 1, 2017, which absorbed many state-level taxes. The financial losses due to GST were compensated by the Centre for five years, but this support ended on July 1, 2022.
Additionally, the 15th Finance Commission's recommended revenue deficit grant was ₹11,431 crore in 2020–21, which has sharply declined to only ₹3,257 crore in 2025–26. The Chief Minister warned that the state’s debt is likely to exceed ₹1 lakh crore in the coming months.
To reduce dependency on borrowing, the government has taken multiple steps to enhance its internal revenue, aiming for more sustainable financial management in the future.
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