The Himachal Pradesh Government will raise a loan of Rs 500 crore to meet its developmental needs during the current financial year 2026-27.
According to a notification issued by the Finance Department on Thursday, the proceeds of the loan will be utilised for development programmes. The Centre’s consent has been obtained for the flotation of the loan, as required under Article 293(3) of the Constitution of India.
The loan will be repaid after a period of 10 years by 2036, and the rate of interest payable will be 7.81 per cent.
Earlier, on April 6 this year, at the commencement of the new financial year, the state government had raised a loan of Rs 900 crore to meet its development requirements. That loan was also raised for a 10-year tenure and is scheduled to be repaid by April 2036.
With spiralling committed liabilities such as salaries, pensions, interest payments, loan repayments and grants for autonomous bodies accounting for nearly Rs 80 out of every Rs 100 spent, only around Rs 20 is left for development works — a grim reflection of the state’s deteriorating fiscal health.
In fact, the worsening financial condition of the state has also cast its shadow on the 2026-27 Budget. The budget size for the current financial year stands at Rs 54,928 crore, which is Rs 3,586 crore lower than last year’s Budget.
