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HP FRMB (Amendment) Bill 2021: Raising Borrowing Limit Would Lead Himachal into Debt Trap, Will Damage Federal Structure, Says Opposition

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HP FRMB (Amendment) 2021 Bill

Shimla-Himachal Pradesh Fiscal Responsibility and Budget Management (FRMB) (Amendment Bill, 2021, was passed in State Vidhan Sabha on March 18, 2021, after a heated debate between the ruling government and the opposition that was followed by a walkout.

Opposition Congress and lone legislator from CPI (M), Rakesh Singha, opposed the Bill. They alleged that the government has no planning regarding managing state’s finances and dependents upon borrowings only. 

According to the State Government, the Bill was introduced and passed to regularize excess borrowings in the year 2019-20. Previously, the state government could only borrow three percent of the gross state domestic product (GSDP), but after this amendment, this borrowing limit was raised allowing the state government to borrow upto five percent of the GSDP.

The opposition leader Mukesh Agnihotri and CPI(M) MLA Rakesh Singha insisted that it was a very delicate matter that is bound to have serious financial implications for the people of the state. They insisted that this Bill should first be sent to the Select Committee for detailed discussion before passing it.

“If the financial condition was so poor, then the state government should have mentioned in the Budget that it would generate resources through taxes,” Agnihotri said.

He said that this will go down as a black day in the history of the state. He argued that instead of fighting for its share from the Centre, the state government is covering up the fault of the Centre. He also said that the state government was already warned by the CAG in 2018 of the violations of the borrowing limits but it did not act then.

“Passing of this Bill would lead Himachal Pradesh into a debt trap and the state won’t be able to come out of it,” Rakesh Singha said.

“This Bill is an attack on the federal structure of the state,” he said.

Opposition and Singha argued that if this Bill is passed then the interest liability on the post-2022 borrowings would rise and Himachal Pradesh doesn’t have sufficient tax-based resources to repay this liability.

“When the GST was introduced then state governments and Centre government had reached an agreement that compensation at the rate of 14% would be given to the state for the 2017-22 period. The government had also imposed Central cess of various kinds, Singha said.

“However, now the states are being told to borrow as Centre had backtracked from providing the agreed compensation,” he added.

More borrowing would lead to more liabilities including interest-liability, he said, asking as to how the state plans to pay it back.

“I want to appeal that this Bill would have serious implication, therefore, send it to the Select Committee and the Cabinet for detailed debate,” he said.

There is only one solution to it, he said.

“Take your entire Cabinet to the Government of India and request it not to impose it on the State Government. Let the Central Government borrow this money,” Singha said.  The opposition leader Agnihotri also supported Singha and said the opposition legislators would support the state government in doing so.

Moving on to the second objection, Singha quoted the sixth line of the Statements of Objects and Reasons.

“In addition, the State of Himachal Pradesh received one-time receipts from the Union Government on account of its share of Compensatory Afforestation Fund Management and Planning Authority (CAMPA) Funds credited in the Public Accounts, which is included in the public debt of the State,” he quoted from the Bill

He argued that the funds being given to the State for the protection of its own forests can’t be treated as a debt in the account of the State.

The Urban Development Minister Suresh Bhardwaj insisted that the Bills is introduced to regularize an anomaly caused by borrowings of the previous Congress government.

Bhardwaj tried to justify the Bill blaming then Congress government for violation of borrowing limits in the years 2012-13, 2013-14, and 2014-15. He also insisted that it was just a one-time relaxation for the year 2019-20.

Bhardwaj quoted the Bill,

“Provided that the fiscal deficit may exceed the level of 3 per cent but shall not exceed 5 per cent of the estimated Gross State Domestic Product in the Financial Year 20919- 2020.”

In 2013, State’s fiscal deficit was Rs 2978 crores – 3.6 percent, 2012 crores in 2013-14 – 4.23 percent and Rs 4200 crores in 2014-15 – 4.05 percent. The Bills is meant to regularize exceeded limits of borrowings in these years too, Bhardwaj argued.

He also said that the revenue collection of Centre under Goods Services Tax (GST) was low due to the pandemic in the said year due to which the state couldn’t get the share committed by the Centre. Bhardwaj also said that the borrowings increased in 2019-20 as funds of Rs 1600 crores received under the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) were also counted as public debt.

He added that the Statement of Objects and Reasons clearly says “The actual receipts of Central taxes decline during 2019-20 due to which share of States also got affected.”

Following a heated argument, the Bill was passed in the absence of legislators who had walked out in protest against it. 

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Kotkhai Custodial Death Case: CBI Court Sentences IGP Zaidi, 7 Other Policemen to Life Imprisonment

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Zahur H Zaidi

SHIMLA – A special CBI court has convicted and sentenced Inspector General of Police (IGP) Zahur Haider Zaidi and seven other policemen to life imprisonment in connection with the 2017 custodial death case of 29-year-old Suraj Singh.

CBI Public Prosecutor Amit Jindal argued for exemplary punishment, emphasizing the gravity of the crime.

After considering the arguments, CBI Special Judge Alka Malik sentenced the eight police personnel to life imprisonment.

On January 18, the accused were found guilty under Sections 302, 330, 348, 218, 195, 196, 201, and 120B of the IPC in connection with the custodial death of suspect Suraj Singh. However, the court acquitted former Shimla SP DW Negi.

The incident occurred on July 18, 2017, when Suraj Singh, an accused in the alleged gang rape and murder of a minor girl in Kotkhai, Shimla district, died in police custody. The CBI investigation revealed that Suraj Singh was tortured and murdered by police personnel.

The court convicted Zaidi, who was the then Inspector General of Police, along with seven other policemen, including Deputy Superintendent of Police (DSP) Manoj Joshi, Sub-Inspector Rajinder Singh, Assistant Sub-Inspector Deep Chand Sharma, Head Constables Mohan Lal, Surat Singh, and Rafee Mohammad, and Constable Ranjit Sateta.

CBI public prosecutor Amit Jindal stated that the court sentenced the eight convicts to life imprisonment and imposed a fine of Rs 1 lakh each on them. The accused were convicted under various sections of the Indian Penal Code (IPC), including murder, voluntarily causing hurt to extort confession, and wrongful confinement to extract confession.

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HP Cabinet Decisions: Approves Pilot Study on Cannabis Cultivation, Seema College Renamed as Raja Virbhadra Singh Govt. College

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HP Cabinet Decisions January 2025

Shimla-The State Cabinet, in its recent meeting held at Dharamshala in Kangra district, made several key decisions across various sectors.

Cannabis Cultivation Study:

The Cabinet approved a pilot study on cannabis cultivation, which will be jointly conducted by Chaudhary Sarwan Kumar Krishi Vishvavidyalaya in Kangra and Dr. Y.S. Parmar University of Horticulture in Solan. The study aims to evaluate the potential of cannabis cultivation and recommend future actions. The Agriculture Department will serve as the nodal agency for this initiative.

Disaster Relief for Tandi Village:

The Cabinet extended the special relief package for disaster-affected families to those impacted by the fire in Tandi Village, Kullu. Under the package, families with fully damaged houses will receive Rs. 7 lakh, those with partially damaged houses will receive Rs. 1 lakh, and families who lost cowsheds will receive Rs. 50,000. Additionally, monthly rental assistance of Rs. 5,000 will be provided to affected families until June 30, 2025.

Robotic Surgery Equipment Procurement:

The Cabinet approved Rs. 56 crore for the procurement of state-of-the-art machinery and equipment for robotic surgery at AIMSS Chamiyana in Shimla and Dr. Rajendra Prasad Government Medical College in Tanda, Kangra. The approval follows a model similar to AIIMS New Delhi, aimed at enhancing medical facilities.

Forest Department Order Amendment:

The Cabinet amended the Forest Department’s previous order to allow the extraction of berberis roots (Kashmal) until February 15, 2025. Furthermore, it permitted the transportation of forest produce extracted from open spaces prior to January 4, 2025, until February 15, 2025, in line with the HP Forest Produce Transit (Land Routes) Rules, 2013.

Ropeway Project and Transportation Improvements:

The Cabinet approved the establishment of a ropeway between Kullu Bus Stand and Peej Paragliding Point. Additionally, it sanctioned the procurement of 24 air-conditioned super luxury buses for the Himachal Road Transport Corporation (HRTC) to improve passenger services.

Rural Development and Infrastructure Reorganization:

Nine posts of Block Development Officers will be filled in the Department of Rural Development. The Cabinet also approved the reorganization of the PWD National Highway Circle in Shahpur, creating two new divisions, Nankhadi and Kholighat, and the Kharahan Section.

State Taxes and Excise Enforcement:

To enhance enforcement, the Cabinet approved the allocation of 100 motorbikes to field offices of the State Taxes and Excise Department for surprise checks and improved monitoring.

State Cadre Posts:

The Cabinet decided to bring the posts of Drivers, all Class-III and Class-IV posts in District Collector (DC) offices, and staff members in the offices of the three Divisional Commissioners, Director of Land Records, Revenue Training Institute (Jogindernagar), Directorate of Consolidation of Holdings (Shimla), and the Settlement Offices in Kangra and Shimla under the State Cadre. This move aims to standardize governance and improve administrative efficiency.

Educational Institutions Renamed:

The Cabinet approved the renaming of several educational institutions. Government College Seema in Shimla will now be known as Raja Virbhadra Singh Government College Seema. GGSSS Sports Hostel (Girls) Jubbal will be renamed Sh. Ram Lal Thakur GGSSS Sports Hostel (Girls), Jubbal, and Government College Khad in Una will be renamed Mohan Lal Dutt Government College Khad.

 

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HP Cabinet Decisions: Eligibility Criteria for BPL List, Special Task Force to Combat Drug Abuse & Other Decisions

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hp cabinet meeting january 9, 2024

Shimla-The Himachal Pradesh Cabinet, in its meeting held on Thursday, approved the inclusion of the following families in the BPL list:

  • Families with no adult members between the ages of 18 and 59.
  • Women-headed families.
  • Families whose head has a disability of 50 per cent or more.
  • Families that worked for at least 100 days under MNREGA in the previous financial year.
  • Families whose earning members are suffering from chronic diseases such as cancer, Alzheimer’s, Parkinson’s, muscular dystrophy, thalassemia, or any other condition resulting in permanent disability.

The Cabinet also approved the establishment of a Special Task Force to combat drug abuse and dismantle drug trafficking and organized crime networks in the state through a comprehensive and multi-faceted approach.

Additionally, the Cabinet decided to promulgate an ordinance to amend Schedule 1A of the Indian Stamp Act of 1899. This amendment will facilitate the levy of a uniform stamp duty rate of 12 per cent on transfer and lease transactions secured under Section 118(2)(H) of the Himachal Pradesh Tenancy and Land Reforms Act, 1972, with prior approval from the State Government.

The Cabinet approved a ban on the felling of trees, except for Safeda, Poplar, Bamboo, and Khair (for sale), in accordance with a ten-year program.

The Cabinet reiterated its request to the Government of India to adopt a 90:10 funding formula for the power component of the Kishau Multipurpose Project, similar to the formula adopted for its water component. Alternatively, the Cabinet proposed providing a 50-year interest-free loan for the entire amount payable by the State Government for the power component under the Inter-State Agreement.

It approved the establishment of a 1 MW Green Hydrogen Project in Nalagarh, to be executed by HPPCL.

The Cabinet sanctioned the imposition of Green Energy Development Charges for Pumped Storage Projects. A charge of ₹2.5 lakh per MW per year will be levied for the first 10 years after the project’s commissioning, increasing to ₹5 lakh per MW per year thereafter.

Approval was given to introduce the Himachal Pradesh Sadbhawana Legacy Cases Resolution Scheme 2025 to resolve pending cases, litigations, and arrears under subsumed enactments such as VAT, CST, Entry Tax, etc.

The Cabinet decided to designate the area surrounding the Tara Devi Temple in Shimla district as a Green Area.

It approved the creation and filling of 10 Junior Office Assistant (IT) posts for the Himachal Pradesh Public Service Commission, Shimla.

The Cabinet selected the Centre for Development of Advanced Computing (C-DAC), under the Ministry of Electronics and Information Technology, Government of India, to conduct computer-based tests for the recruitment of Group-C posts through the Himachal Pradesh Rajya Chayan Aayog, Hamirpur.

Approval was granted for creating the Block Primary Education Office at Rohnat by bifurcating the existing Block Primary Education Office at Shilai in the Sirmaur district.

The Cabinet decided to transfer three-gram panchayats — Matyal, Kudal, and Dhadol — from Development Block Lambagaon to Development Block Baijnath in Kangra district to serve the residents of these areas better.

The Cabinet approved the Baddi-Barotiwala-Nalagarh Development Authority Land Pooling Policy-2025.

It also approved the establishment of the Himachal Pradesh State Water Informatics Centre to collect data from domain-specific bodies, develop new databases, and disseminate comprehensive water-related information.

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