Shimla April, 1; A report by the Comptroller and Auditor General of India (CAG) has warned that Himachal Pradesh could fall into a “debt trap”, as the state’s public debt rose to Rs 27,910 crore in the previous financial year.
The report, tabled in the Himachal Pradesh assembly on Friday, revealed that the state was required to pay 62% of this debt within 7 years. The report has revealed that the overall fiscal liabilities of Himachal Pradesh increased by Rs 12,969 crore (46%) in four financial years, from Rs 28,228 crore in 2011-12 to Rs 41,197 crore in 2015-16. It said interest payments increased by 48% in the same period, from Rs 2,130 crore in 2011-12 to Rs 3,155 crore in 2015-16, and by Rs 306 crore (11%) over the previous year.\
Public debt increased from Rs 19,511 crore in 2011-12 to Rs 27,910 crore in 2015-16, registering an annual average growth rate of 8.42%. It said share of market borrowings in total public debt went up from 52% in 2011-12 to 60% in 2015-16.