Shimla (Himachal Pradesh) [India], September 13 (ANI): Former Himachal Pradesh Chief Minister and Leader of Opposition Jairam Thakur on Sunday attacked the Sukhvinder Singh Sukhu-led state government over the state's financial situation, alleging that Himachal's economy has reached a critical stage due to the government's 'financial mismanagement'.

Thakur, citing the CAG report, claimed that the state's treasury position had weakened and accused the government of failing to maintain fiscal discipline. He alleged that despite making claims of building a self-reliant and prosperous Himachal Pradesh, the government had pushed the state's economy towards a crisis.

Thakur said the state government was making claims of building a self-reliant and prosperous Himachal Pradesh, while the state's economy had reached a critical stage.

'The CAG report has exposed not only the government's failures but also the serious financial condition of the state. Due to the failure of the Sukhu government, the financial system of the state has completely collapsed,' Thakur said in a statement issued from Shimla.

The former chief minister said the CAG report highlighted a sharp decline in the state's Cash Balance Investment Account. He claimed that during 2020-21 to 2022-23, the account had consistently increased and reached Rs 3,645.18 crore during the previous BJP government, but witnessed a decline of Rs 2,187.37 crore in 2023-24 and Rs 1,457.81 crore in 2024-25.

Attacking the government over cash management, Thakur alleged that Himachal Pradesh failed to maintain the prescribed minimum cash balance for 162 days, which accounts for 44 per cent of the year.

He further claimed that the state treasury went into overdraft 42 times within 12 months and the government could not repay Rs 1,652.42 crore by the end of the financial year, resulting in an additional interest burden of Rs 12.40 crore.

Thakur also alleged that the state government borrowed Rs 11,276.83 crore from the Reserve Bank of India through Ways and Means Advances on 120 occasions in 12 months.

'The manner in which the state's treasury and public money are being used is nothing less than a financial emergency,' he said.

The BJP leader accused the government of diverting funds meant for development projects and centrally sponsored schemes towards regular expenditure, claiming that this had delayed projects and increased their costs.

He alleged that due to non-submission of utilisation certificates, allocations for upcoming budgets were being affected and several schemes were either incomplete or facing financial setbacks.

Questioning Chief Minister Sukhu's claims that Himachal Pradesh would become self-reliant by 2027 and the most prosperous state in the country by 2032, Thakur said, 'The Chief Minister should tell the people of the state the formula behind these claims.'

He further alleged that these announcements were similar to the government's other 'false claims' and were being used to 'buy time'. (ANI)