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HP ministers refute PK Dhumal's charge regarding financial mess

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Three Cabinet ministers of Himachal Pradesh government on Tuesday strongly refuted the charge of former chief minister PK Dhumal that the state was passing through serious financial crisis.

Dhumal had alleged that the state was resorting to emergency measures, including hike in fee and not paying the dearness allowance to the state government employees.
Vidya Stokes, Mukesh Agnihotri and Sudhir Sharma, in a joint statement issued here, said the Congress government inherited the "bad financial situation" due to mismanagement of previous BJP government.

"Himachal had been following the pay structure recommended by Punjab Pay Commission, but the previous BJP government flouted the established norms to increase the pay scales of the government employees based on the recommendations of the Cabinet Sub Committee of Punjab government," they said.

They said "the enhanced pay structure was followed by the BJP government in Himachal Pradesh on the eve of the last Assembly elections causing burden of over Rs 1,000 crore annually".

The leaders accused the previous BJP government of not presenting the case of the state before 13th Finance Commission forcefully and logically. The ministers said while the average increase recommended by the Commission was 126 per cent as compared to 12th Finance Commission, Himachal Pradesh got increase of only 50 per cent and had the state got 126 per cent increase, the additional fund transfer would have been to the tune of Rs 10,725 crore.

The situation became alarmingly grim during the last two years of the award period of the 13th Finance Commission as the Non-Plan Revenue Deficit Grants during the financial year 2013-14 declined to Rs 1,313 crore from Rs 1,883 crore in 2012-13 and would further reduce to Rs 406 crore during the current financial year (2014-15), they added.

The loan liability of the government in 2008, when the BJP government took over, was Rs 21,241 crore which increased to Rs 28,707 crore on March, 2013, implying that the loan liability increased by Rs 7,466 crore between during five years rule, they said.

In fact, loan amounting to Rs 1,838 crore was converted into guarantee in the year 2009-10 and the actual loan taken between the period March, 2008 to March, 2013 was Rs 9,304 crore whereas, the loan liability increased only by Rs 8,032 crore during the period April, 2003 to March, 2008 during the Previous Congress regime, the ministers asserted.

Defending the loans raised by the government, the ministers said these had been raised strictly in accordance with the authorisation affected by the Central government under Section 393(3) of the Constitution of India.

Defending the appointments of chairpersons and vice chairpersons of boards and corporations, the ministers said that the appointments were essential for better delivery of services to the citizens.

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