Himachal Pradesh’s Congress government is facing a severe financial crisis, exacerbated by the cost of implementing popular welfare schemes such as free electricity and pensions. The financial strain has grown so severe that the state is struggling to pay electricity bills for its establishments. In response, the Himachal Pradesh High Court has ordered the closure of 18 state-run hotels managed by the Himachal Pradesh Tourism Development Corporation (HPTDC) due to outstanding electricity dues of ?150 crore. The court also directed the seizure and sale of the Himachal Bhawan Hotel in Delhi to recover the arrears, criticizing the misuse of public funds on unproductive ventures.
The state’s debt has skyrocketed to over ?95,000 crore, leading to delays in salary and pension payments to government employees and retirees. To manage its financial woes, the government has scaled back free electricity benefits and halted pensions for legislators disqualified under the Defection Act. However, many state-run hotels under HPTDC remain neglected and unprofitable, adding to the state’s economic challenges. The court’s mandate to shut down loss-making hotels by November 25 highlights the pressing need to stem financial losses and protect taxpayer money.
Himachal Pradesh’s economic troubles reflect the risks of prioritizing welfare initiatives without sustainable planning. While schemes like free electricity and pensions offer short-term benefits, their long-term fiscal burden is evident in the current crisis. The government now faces the difficult task of restoring financial stability while maintaining public trust and addressing systemic inefficiencies in resource management.