CAG Highlights Growing Debt Burden and Shrinking Capital Funds in Himachal

The CAG also flagged a surge in electricity subsidy outlays and loan‑relief measures, which added further pressure on the state’s finances. While Himachal’s economy grew by 9.20 % in the year, its contribution to India’s GDP was a modest 0.70 %, marking a decline over the past five years.

The audit noted that the state remains heavily dependent on central grants and that several levy collections such as milk cess, environment cess and building and other construction workers welfare cess were kept outside the official treasury accounts, raising concerns about fund management.