Govt introduces bill to enhance Himachal’s borrowing limit

Himachal Pradesh chief minister Sukhvinder Singh Sukhu said in order to maintain pace of development, the state government may have to borrow beyond the existing limit set under the Fiscal Responsibility and Budget Management Act, 2005

The Himachal Pradesh government on Thursday introduced a bill in the assembly for the state to enhance its borrowing limit set under the Fiscal Responsibility and Budget Management (FRBM) Act, 2005.

Himachal Pradesh chief minister Sukhvinder Singh Sukhu addressing the assembly during the Vidhan Sabha winter session at Dharamshala on Thursday. (HT Photo)

Introducing the Himachal Pradesh Fiscal Responsibility and Budget Management (Amendment) Bill, 2023, chief minister Sukhvinder Singh Sukhu said that the 2005 Act was enacted to provide for the responsibility of the state government to ensure prudence in fiscal management and financial stability.

“The revenue receipts of the state government have been affected due to discontinuation of the goods and services tax (GST) compensation during the financial year 2022- 23. The Covid pandemic has also adversely impacted the income of the state in the previous financial years,” he added.

This has cast adverse effects on the revenue and fiscal targets as specified in the said Act, he said.

In order to maintain pace of development, the Himachal government may have to borrow beyond the existing limit set under the Act for which it is required to be amended.

An amendment is also being brought to entrust the comptroller and auditor general to review the compliance with the provisions under the Act, Sukhu said.