Despite a ₹3,500 crore cut, promises galore – Congress government’s budget will be a total failure: Mahajan

BJP Rajya Sabha MP Harsh Mahajan launched a scathing attack on the Himachal Pradesh government’s budget, saying it is set to be a complete failure and is leading the state toward a serious economic crisis. He said that compared to the previous budget of ₹58,514 crore, this time the budget has been reduced to ₹54,928 crore, a cut of approximately ₹3,500 crore, a first in Himachal’s history.

Harsh Mahajan said that the most worrying fact is that only 20% of the total budget is left for development work. He gave a clear analysis of the budget, stating that

• 27% will be spent on salaries

• 21% will go towards pension

• 13% will be spent on interest payments

• 9% will go towards repaying the loan principal

• 10% will go towards grants to various institutions

After this, the government is left with only ₹20 out of ₹100, with which development works of the entire state – roads, bridges, irrigation, electricity, water, tourism and other schemes are to be carried out.

He said that this situation clearly indicates that the state’s financial condition is extremely poor and Himachal is heading towards a financial emergency. He said that the state has taken on new loans of more than ₹45,000 crore in the last three years, and the total debt has exceeded ₹1 lakh crore, while approximately 22% of the budget, including interest and principal, is being spent on debt repayment.

Harsh Mahajan said the government is making big promises—₹1,500 to women, 300 units of free electricity, ₹500 crore for 300 unfinished works—but the real question is where will the money come from to fulfill these promises when the budget size has shrunk and the development component has also decreased?

He said that in the last financial year, after a budget of ₹58,514 crore, a supplementary budget of ₹40,461 crore had to be introduced, which clearly demonstrates the government’s complete failure in financial management. The same situation will likely repeat itself this time.

Mahajan said that the budget share for development is continuously decreasing.

• 29% in 2023-24

• 28% in 2024-25

• 24% in 2025-26

• And now only 20% in 2026-27

This decline shows that the pace of development of the state is continuously slowing down.

He said that the state treasury is on “ventilator”, cash flow has deteriorated and the government is running only on the basis of announcements.

He raised the question:

Will the government be able to survive the year without new debt?

Will it be able to strike a balance between employees, pensions and growth?

Will there not be a huge supplementary budget again?

Finally, Harsh Mahajan said that this budget is only a bundle of paper announcements and political promises, which neither has financial strength nor a clear roadmap for development.

“This budget is not a document of Himachal’s development, but of financial mismanagement, dwindling resources and rising debt – and if the situation does not improve, the state could reach a dangerous situation of financial emergency.”