Former Chief Minister Shanta Kumar has raised concerns over the state government’s decision to withdraw the Cabinet rank from some leaders, describing it as a “temporary political move” rather than a genuine step towards financial discipline.
Shanta Kumar, while addressing mediapersons at his residence in Palampur, said that while curbing the government expenditure was essential in the current economic situation, such measures should not be symbolic or short-lived.
He added that the decision had reportedly been taken for only six months, questioning whether the state’s financial crisis would end after that period.
He said that the state was burdened with a heavy debt to the tune of thousands of crores of rupees, largely due to unchecked expenditure without corresponding efforts to enhance revenue.
“There is no doubt that reducing expenditure is necessary and such a decision deserves appreciation. However, when it appears to be temporary, it raises doubts about the government’s intent,” he added.
Shanta Kumar said that financial discipline required sustained efforts. He likened governance to managing a reservoir, saying just as saving every drop fills it and wasting each drop empties it, prudent financial management could strengthen the economy.
He recalled during his tenure as Chief Minister, careful planning and savings enabled the state to undertake development despite limited resources.
He urged the state government to constitute a committee of experienced administrators and experts to review expenditure and identify areas where costs could be reduced. At the same time, he stressed the need to explore avenues for increasing revenue.
He highlighted a key problem and called for revisiting the royalty structure of hydroelectric power projects in the state.
He said that while electricity tariffs had risen significantly over the years, the royalty received by Himachal Pradesh for its water resources had not increased proportionately. He urged the state government to take up the matter with the Central Government to ensure a fair revision.