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First Karnataka, Now Himachal. Are Congress Govt Freebies Destroying State Economies

Business Today
New Delhi ,
Jun 26, 2024,
Updated Jun 26, 2024, 7:09 PM IST

The Himachal Pradesh government finds itself in deep financial trouble with populist schemes draining its treasury.

Elected to power in 2022, the Sukhvinder Singh Sukhu-led government immediately reverted to the old pension system for its 1.36 lakh state government employees and also started the Indira Gandhi Payari Behna Sukh Samman Nidhi Yojna under which women are given ₹1,500 financial assistance every month. “We are forced to borrow to service our loans”, said Sukhu after a meeting with members of the 16th Finance Commission in Shimla. The 13-member commission led by Dr Arvind Panagariya held 3-day talks with the state government as part of its exercise to decide allocations for the state.

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