Himachal Pradesh Congress Committee (HPCC) president Virbhadra Singh on Sunday charged incumbent Prem Kumar Dhumal for the financial mismanagement by the present BJP government.
He alleged that the surplus budget of the previous Congress government of Rs 191 crore in 2006-07 and Rs 850 crore in 2007-08 turned into a revenue deficit of Rs 130 crore in the first year of BJP rule 2008-09 and further increased to Rs 519 crore in 2009-10 and Rs 1,235 crore in 2010-11.
In order to meet the increasing revenue deficit, the BJP government had to resort to increased borrowings. The cumulative debt liability of the state has increased in 2010-11 to Rs 26,415 crore from Rs 19,000 crore in 2007-08.
Out of this Rs 19,000 crore, Rs 12,444 crore is the debt inherited by the Congress government from the BJP government in 2003.
By the end of the current financial year this debt liability is likely to increase to Rs 30,000 crore.
Incurring debt is only justified if the expenditure is incurred in creating capital assets that would generate income to help pay the debt back. But the BJP government incurred Rs 154 crore less capital expenditure in 2010-11 and Rs 136 crore in 2009-10.
"Evidently less priority was given to social and economic services and this may have an adverse impact on the social and economic health of the state", observed the CAG in his audit report for the year 2010-11.
Singh said this diversion of loan of Rs 290 crore from the capital expenditure resulted in less funds being made available for the maintenance of schools and hospitals and filling up of the vacancies.