Himachal CM, deputy sign in: Five big challenges Sukhu government faces

Even though the Chief Minister has announced that he will initiate the old pension scheme in the very first Cabinet meeting, the finances of the state are ill equipped to bear the additional burden this scheme will impose on the state in the long term. As of now, only a fourth of the state’s revenue comes from its Own Tax Revenues (OTR). Meanwhile, the expenditure on pension has increased from 15.66 per cent in 2016-17 to 18.21 per cent in 2020-21.

300 units of free power, other promises

In the runup to the elections, Congress had promised 300 units of free power to people of the state in a bid to outdo the Aam Aadmi Party that promised and implemented this guarantee in the neighbouring state of Punjab. The state is already providing free power for up to 125 units since 1 July. It was a gift given by the Jairam Thakur government to the residents to mark the 75th foundation day of the state in August. Though the state generates surplus electricity and has a power potential of about 24,567 MW, this freebie will add to the burden on the resources of the state.

The Congress manifesto had also promised a monthly stipend of 1500 to women, a promise that AAP (it had promised 1000) is yet to implement in Punjab.

Unemployment blues

Unemployment remains a big bugbear of the government in a state where people still have a fondness for government jobs. The total number of registered unemployed youth in the state stands at around nine lakh, which is almost 12% of its population. According to the Centre for Monitoring Indian Economy (CMIE), at 9.2 percent, Himachal Pradesh has the fourth highest unemployment rate in the country. Himachal’s unemployment rate in October was 9.2%.

The new government will have to fasten the pace of industrialisation in the state to generate more employment besides giving a new push to the tourism sector which has emerged as the biggest employer after the government.

Breathing new life into horticulture

Apple growers of Himachal are in distress. This was evident in August this year when 27 growers organisations under the umbrella of Sanyukt Kisan Morcha held a massive rally to put forth 20 demands.

The input cost of apple growers has almost doubled in the last two years with no corresponding increase in income. With many orchards growing old, the apples are no longer a lucrative business. It’s increasingly becoming a business of diminishing returns. Apples form the backbone of the economy in Shimla, Kullu, Manali and parts of Mandi. The growers have been up in arms ever since the central government raised the GST on packaging material from 12% to 18% last year. The GST on fertiliser, pesticide and fungicide was also jacked up to 17%, thus further squeezing their profit margins.

This space is in serious need of a revamp, be it in the form of better varieties or marketing.

It remains to be seen if the Congress government whose ranks include many orchardists will rise to the challenge. The Sanyukt Kisan Manch has called for setting up a horticulture board for the welfare of horticulturists. It could be a first step.

Battling dissent

CM Sukhwinder Singh Sukhu has remained a very questioning party leader all his life and continued to grow despite often dissenting with late chief minister Virbhadra Singh. Now it remains to be seen how well he will tackle dissent from within the party and outside. He will have to walk on step with HPCC president Pratibha Singh, who so openly staked claim to the top post.

Then there is the resurgent BJP which hasn’t had such a big loss. The party will be waiting for schisms within the Congress to strike back. How the CM and the new government deal with these issues will decide their stability.