Economic reforms only way to reduce HP debt burden

  • 30/11/2004

  • Tribune (New Delhi)

The fiscally-stressed states like Himachal Pradesh will have to comply with stringent conditions and carry out radical economic reforms in the right earnest to avail the debt mitigation facility.The hill state, which is reeling under a debt of over Rs 18,000 crore, is seeking a soft loan of Rs 7,000 crore to replace its expensive debt under the facility. With a state gross domestic product of Rs 19,000 crore the debt liability has to be brought down to Rs 12,000 crore to achieve the normative level. Besides, reducing the revenue deficit in accordance with the provisions of the Fiscal Responsibility and Budget Management Act, the state will have to take a number of steps to bring down the cost of basic services like water, power, health, education and transport.