Himachal’s economy in crisis due to CM Sukhu’s ‘mismanagement’: Jai Ram

Saffron party slams Sukhu govt for blaming Centre over RDG cuts; highlights high debt-to-GSDP ratio and ‘lavish’ spending on advisers.

Intensifying its attack on the Sukhvinder Singh Sukhu-led Congress government over the state of finances, the Bharatiya Janata Party (BJP) on Wednesday said Himachal’s economy is in crisis due to chief minister Sukhu’s “mismanagement”.

BJP state co-incharge Sanjay Tandon accused the government of hiding its administrative and governance failures by unfairly blaming the Union government. (File photo)

“The Revenue Deficit Grant (RDG) has been discontinued not only for Himachal but also for 17 other states. CM is misleading the public by calling it a central conspiracy,” Thakur said, alleging that the Congress hastily issued ten guarantees to win the elections, but now wants to shift the financial burden to the central government, which is unfair. “Himachal’s economic crisis is due to mismanagement of CM Sukhu,” he added. He said that the Congress government is preparing to shift the blame for its mismanagement to the Centre, imposing tax burdens on the public and depriving them of benefits, while simultaneously distributing cabinet rank and expensive vehicles to “friends” and squandering the state’s wealth.

HP govt shifting responsibility: Tandon

Intensifying its attack on the Sukhvinder Singh Sukhu-led Congress government over the state of finances, the Bharatiya Janata Party (BJP) on Wednesday alleged that the dispensation was shifting responsibility instead of correcting its own fiscal mismanagement.

BJP state co-incharge Sanjay Tandon accused the government of hiding its administrative and governance failures by unfairly blaming the Union government. He clarified that the discontinuation of the Revenue Deficit Grant (RDG) was not a sudden blow but a phased, pre-declared recommendation made by successive finance commissions.

“If we compare Himachal with Uttarakhand—two hill states with similar geography and constraints—Uttarakhand has performed significantly better in revenue mobilisation and investment attraction. Meanwhile, Himachal’s revenue deficit and debt ratios have worsened sharply,” Tandon said, noting that the state’s debt-to-GSDP ratio has crossed the alarming 40% mark.

Borrow and spend model under fire

Echoing the concerns, state BJP president Rajeev Bindal said that the Congress government has pushed Himachal into a deep financial and law-and-order crisis. He characterised the current administration as a “borrow and spend” model that prioritises political appointments over fiscal discipline.

“The government has appointed nearly 75 advisers, OSDs, and special appointees who enjoy high salaries, official vehicles, and residences, costing the exchequer crores,” Bindal alleged. He further pointed out that the state has engaged over 100 law officers and continues to hire expensive senior counsels for major cases, further straining the state’s limited resources.