Reviving Himachal's Economy: A Financial Jigsaw

The Comptroller and Auditor General of India (CAG) report highlights the challenges in revitalizing Himachal Pradesh's economy. With limited self-generated revenue and dependency on central taxes, resource mobilization is critical. The report also reveals misuse of the Disaster Relief Fund, urging efforts to boost revenue and rectify fiscal discrepancies.

The latest report from the Comptroller and Auditor General of India (CAG) has spotlighted critical challenges facing Himachal Pradesh's economy. It reveals the state's significant dependency on central taxes and grants, with only 33% of revenue being generated internally. This presents a formidable challenge to economic revitalization efforts.

Presented by Chief Minister Sukhvinder Singh Sukhu in the state Assembly, the report for 2021-22 states that the revenue receipts were Rs 12,326.98 crore. Of this, a substantial 67% originated from external sources, underscoring the need for resource mobilization to improve the state's financial autonomy.

Additionally, the report highlighted a troubling misuse of the state Disaster Relief Fund, with Rs 22.61 crore spent against stipulated regulations despite public accounts committee objections. This calls for stringent measures to address fiscal mismanagement and enhance revenue through increased non-tax income and strategic expenditure.

(With inputs from agencies.)