The report that state government's notification reverting to the Old Pension Scheme (OPS) makes for imminent financial burden in coming years and it needs to be reckoned with while assessing debt sustainability of the state.
Himachal Pradesh’s debt-to-Gross State Domestic Product (GSDP) ratio has increased steadily over the last four years, from 39.09% in 2019-20 to 43.98% in 2023-24. By the end of March 2024, total debt and liabilities had surged to Rs 95,633 crore, significantly overshooting the targets set under the Fiscal Responsibility and Budget Management (FRBM) Act, as per a Comptroller and Auditor General (CAG) report.
The report for the financial year 2023-24, tabled in the Himachal Pradesh Vidhan Sabha Friday, has flagged mounting debt, persistent fiscal imbalance, and non-compliance with key financial norms.
As per the auditors, the state has breached its annual borrowing limit. Against the prescribed loan limit of Rs 6,342 crore in 2023-24, the government borrowed Rs 9,043 crore. Alarmingly, most borrowings were utilized to repay existing loans. In 2019, 52.99% of public debt was spent on loan repayments, which jumped to 74.11% by 2024, indicating a debt trap scenario.
The report also highlighted how the state’s revenue expenditure has increased significantly under five components including interest payment (Rs 819.73 crore) and pension and other retirement benefits (Rs 771.98 crore). The revenue expenditure on interest payment was Rs 4,828.64 crore in 2022-23, and rose to Rs 5,648.377 crore in 2023-24. Similarly, the total revenue expenditure on pension and other retirement benefits was Rs 9,283.87 crore in 2022-23 and shot up to Rs 10,055.85 crore in 2023-24. Other three components wherein the expenditure was increased included Relief of Account of Natural Calamities (Rs 597.64 crore); Social Security & Welfare (Rs 193.02 crore) and Road Transport (Rs 1884.30 crore).
The CAG found that the government failed to utilize Rs 1,024 crore received from the Centre, which remained idle in nodal agency accounts.
The CAG also reported significant decrease in seven components including rural employment (down by Rs 105.67 crore); Medical and Public Health ( down Rs 105.76 crore); Family Welfare (down Rs 149.99 crore); Other Rural Development Programme (down 535.19 crore); General Education (down Rs 510.27 crore); Crop Husbandry (Rs 215.56 crore) and Food Storage and Warehousing (down Rs 147 crore) in 2023-24 compared to previous financial year (2022-23).
The CAG also pointed out the non-utilization of the entire budget of Rs 31.85 crore reserved for six schemes in 2023-25. The schemes were Rajiv Gandhi Day Boarding School (Rs 9.74 crore); PM Young Achiever Scholarship award scheme for Vibrant India for OBC and Other Post Matric (Rs 66 lakh); Srinivasa Ramanujan Student Digital Yojna (Rs 16.45 crore); Kalpana Chawla Chatravriti Yojna (Rs 2.47 crore); Khel se Swasthya Yojna (Rs 1.82 crore) and Mukhya Mantri Gyandeep Yojna (Rs 71 lakh).
The report that state government’s notification reverting to the Old Pension Scheme (OPS) makes for imminent financial burden in coming years and it needs to be reckoned with while assessing debt sustainability of the state. “Increase of Rs 771.98 crore under ‘Pensions and Other Retirement Benefits’, was mainly due to increase of Rs 1,182.70 crore in ‘Superannuation and Retirement Allowances’, Rs 235.13 crore in ‘Commuted Value of Pensions’, Rs 244.63 crore in ‘Family Pensions’, counterbalanced by decrease of Rs 939.50 crore in ‘Government Contribution for Defined Contribution’, as Himachal Pradesh reverted back to the Old Pension Scheme,” read the report.
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The auditors further pointed out that as per the debt stabilisation analysis, the overall liability (which includes Public Debt and Public Account Liabilities) of Himachal Pradesh has grown at an average annual rate of 11.07 per cent between 2019-20 to 2023-24. The total Outstanding Debt-GSDP ratio has increased from 39.09 per cent in 2019-20 to 43.98 per cent in 2023-24. Going by the fiscal trends, the state finances are stressed.
According to the CAG, the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 mandates a fiscal deficit cap of 3.5% of GSDP, but Himachal’s deficit reached 5.43% in 2023-24, up from 3.52% in 2019-20. The state also recorded a revenue deficit of Rs 5,558.59 crore in 2023-24, despite receiving revenue deficit grants of Rs 8,058 crore during the year.
The CAG found that the government failed to utilize Rs 1,024 crore received from the Centre, which remained idle in nodal agency accounts. Departments did not submit 2,990 utilization certificates (UCs) for Rs 2,795.23 crore under various schemes, pending since 2021-22. This indicates lack of internal control by the administrative departments and tendency on the part of the government to disburse fresh grants without ascertaining proper utilisation of earlier grants, the report said. Two autonomous bodies and 18 Public Sector Undertakings/ Corporations did not submit their final accounts for considerable periods. As a result, their financial position could not be assessed and results of investments of the government remained outside the purview of the State Legislature, it added. Further, in 15 cases of theft, misappropriation and loss of government material, departmental action was pending for long periods.
As of March 31, 2023, there were 30 cases of misappropriation, loss, and theft involving Rs 49.56 lakh. Although 15 cases were settled in 2023-24, 15 others worth Rs 38.39 lakh remain pending, some over 15 years old. The CAG emphasized the need for timely investigations, fixing accountability, and strengthening internal controls to prevent recurrence.
Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting.
Professional Background
Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters.
Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India.
Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions.
Recent Notable Articles (Late 2025)
His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh:
1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth.
2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025).
3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025)
4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025)
Legal & Agricultural Affairs
"Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned.
"Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur.
3. Governance & Environment
"Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act.
"Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters.
Crime especially cyber crimes, crypto currency etc:
crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023)
Signature Beats
Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs.
X (Twitter): @saurabh_prashar
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The CAG found that the government failed to utilize Rs 1,024 crore received from the Centre, which remained idle in nodal agency accounts.