Shimla, April 03: The Himachal Pradesh government has raised a ₹900 crore loan in the 2025-26 financial year, with repayment scheduled by April 4, 2035. The Finance Department issued the notification yesterday, marking the first borrowing of the year.
The state sought approval from the Central Government before applying, as required under Article 293(3) of the Constitution. The loan will support development initiatives, though the government’s biggest financial commitments remain salaries and pensions for employees.
In 2024-25, Himachal raised ₹29,046 crore in loans. Chief Minister Sukhvinder Singh Sukhu had mentioned that only ₹8,693 crore of that was spent on development, while the rest went toward repaying past debt and interest accrued under the previous BJP-led administration. “With an annual salary and pension liability of ₹30,000 crore, the fiscal space for development is limited,” he stated.
The 2025-26 financial year is expected to be difficult, as the revenue deficit grant (RDG) is set to drop from ₹6,258 crore to ₹3,257 crore. With GST compensation ending in June 2022, the state has limited revenue-generation options.
Presenting the budget, Sukhu had mentioned that out of every ₹100 spent, only ₹24 would be available for development, while ₹25 would go to salaries, ₹20 to pensions, ₹12 to interest payments, ₹10 to debt repayment, and ₹9 to grants for autonomous bodies.
The state is also awaiting the release of ₹9,000 crore under the Post-Disaster Need Assessment (PDNA) for infrastructure damages from the 2023 monsoon floods. The Chief Minister had met Union Home Minister Amit Shah last month, urging the release of the funds.
