Sukhvinder Singh Sukhu

The Himachal Pradesh government, led by Chief Minister Sukhvinder Singh Sukhu, is taking steps to rationalise subsidies and freebies to address the State’s financial challenges. With the total debt soaring from ₹47,906 crore in 2018 to ₹76,651 crore in 2023, Sukhu has criticized the previous BJP regime for its wasteful expenditures and financial mismanagement. Sukhu’s government aims to improve revenue by curbing subsidies given to affluent sections of society. “We are working towards fiscal prudence, and rationalising various subsidies is one among them,” said the Chief Minister. Subsidy cuts include stopping the electricity subsidy for hotels and large commercial establishments, and imposing charges for water on rural households earning above ₹50,000 annually, while weaker sections continue to receive it for free. The government has also introduced water cess on power projects, though its implementation faces legal hurdles. Other austerity measures include deferring the salaries of top government officials for two months to symbolize the State’s commitment to financial discipline. The opposition BJP has targeted the Congress government, blaming it for the rising debt, now approaching ₹90,000 crore. Sukhu argues that his government inherited this financial burden and is taking steps to correct it, such as adopting an open tender policy for auctioning retail liquor vends, generating significant revenue compared to the previous government’s approach. Sukhu also criticized the BJP for not adequately presenting the State’s case before the 15th Finance Commission, resulting in a reduction of the revenue deficit grant and restrictions on borrowing for external projects. Sukhu’s government continues to push for reforms to stabilize the State’s finances and curb further debt accumulation. Source: The Hindu