Steering govt out of financial crisis major challenge: HP CM

Reeling under a debt burden of Rs 46,500 crore, the hill state of Himachal Government is facing a serious financial crisis and bailing out the state is a big challenge, Chief Minister Jai Ram Thakur said today.

The state government will soon seek a bailout package from the Centre, the newly elected chief minister said as he blamed the previous Congress regime of wasteful expenditure.

"The financial situation is grim and the debt burden has risen to Rs 46,500 crore and steering the government out of this situation is a grave challenge," he told mediapersons in an informal chat.

The government would prepare a bailout package and sent it to the Union Government and concerned officers have been asked to prepare detailed proposals, he said.
 

The chief minister, however, made it clear that financial constraints would not come in the way of development, Thakur said adding that he has already spoken to Prime Minister Narendra Modi, who has assured that needful would be done in this regard.

"The prime minister has asked me to send detailed proposals after consulting various departments for sanctioning funds," he said adding the borrowing limit of the government had also been exceeded.

He said that era of wasteful expenditure has passed with the exit of the Congress government.

Thakur alleged that the outgoing government indulged in reckless spending during past one year and made announcements of developmental works without completing the codal formalities and making budget provisions.

The government made appointments and laid foundation stones of projects to derive electoral mileage and plunged the state into financial mess, he added.

Thakur the government would seek special industrial package from the Centre as the package given by Atal Bihari Vajpayee government was curtailed and various incentives were withdrawn.

He said that there was a vast potential for development of tourism and the government would improve connectivity and strengthen the infrastructure to exploit this potential.

Replying to a question, he said that the government was exploring legal options to bail out the people affected by Nation Green Tribunal (NGT), banning constructions in core areas and restraining the government from regularising the illegal constructions.