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HP FRMB (Amendment) Bill 2021: Raising Borrowing Limit Would Lead Himachal into Debt Trap, Will Damage Federal Structure, Says Opposition
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.
Solan—In a shocking incident on Monday, an 18-year-old youth, Pravesh, survived a vicious leopard attack in Sarli village of Arki subdivision. The teenager reportedly fought the leopard for nearly 12 minutes before breaking its jaw, killing the animal on the spot.
Quick Thinking Saved His Life
Pravesh told the media that he was walking from the fields to a nearby shop in the morning to fetch milk when the leopard, hidden in the crops, lunged at him. Noticing the leopard’s tail, he attempted to run but fell after a short distance. During the attack, he covered his neck with his hands to protect himself from fatal bites.
The teenager continued to struggle with the leopard, repeatedly attempting to put distance between himself and the predator. In a desperate move, he grabbed the leopard by its mouth, twisted its jaw, and broke it, killing the animal instantly. Pravesh sustained multiple injuries, including deep claw marks, and is currently receiving treatment at Arki Hospital. Police and forest department teams have launched an investigation into the incident.
Serious Allegations of HP Forest Department’s Negligence
One of Pravesh’s relatives accused the forest department of negligence, noting that similar attacks had occurred in the area previously.
Earlier, a leopard had attempted to attack a scooter rider, who managed to escape. The family said they had informed the forest department on March 6 about potential danger, but no concrete action was taken. Villagers waited for three hours for a forest team to arrive, but none came. When the Block Officer eventually visited, he reportedly told villagers to ensure their own safety. Requests for cages to capture the leopard were also denied, with officials asking for written complaints instead.
SHIMLA | 7 August 2025 –The India Meteorological Department (IMD) has forecast light to moderate rainfall across Himachal Pradesh over the next two weeks, with isolated heavy to very heavy showers likely over the low hills, plains, and adjoining mid-hill regions. While the ongoing monsoon remains vital for agriculture, it also brings an elevated risk of localized flooding and landslides.
Week of August 8–14
Maximum temperatures will range from 22°C to 34°C, depending on elevation—22°C to 28°C in high hills, 26°C to 30°C in mid-hills, and up to 34°C in lower regions. Minimum temperatures are expected to remain near normal, between 12°C and 24°C. Cooler conditions may persist in districts like Kullu and Lahaul-Spiti.
Week of August 15–21
Similar rainfall patterns are expected to continue, with scattered heavy rain episodes. Temperature trends will remain stable, though slightly below-normal maximum temperatures are likely in parts of Lahaul-Spiti, Mandi, Kangra, and Kullu districts.
Outlook for Late August
Rainfall is expected to remain broadly normal, with region-specific variations. Districts such as Kinnaur, Shimla, and Sirmaur may see below-normal precipitation, while Una, Kangra, Hamirpur, Bilaspur, and Solan are likely to receive above-average rainfall. Both maximum and minimum temperatures are forecast to stay close to seasonal norms.
Officials at the Meteorological Centre in Shimla have urged residents and local authorities to remain alert for sudden heavy downpours, which could disrupt road connectivity and trigger landslides—especially along vulnerable hillside routes. Past monsoon episodes have blocked key highways, including routes between Mandi and Kullu and near Banjar, underscoring the ongoing challenges in the region.
This advisory comes as Himachal Pradesh continues to face the dual pressures of sustaining its agriculture-dependent economy while managing the life and infrastructure risks posed by an active monsoon. Continued vigilance and preparedness remain crucial.
SHIMLA | 7 August 2025 –Himachal Pradesh continues to deal with the impacts of the 2025 monsoon season, reporting extensive property damage, loss of lives, and widespread disruptions across the state. According to the official reports from the State Emergency Operations Centre (SEOC), the Department of Revenue, and the India Meteorological Department, from June 20 to August 6, 2025, heavy monsoon rains caused significant damage across multiple districts:
- Casualties: 199 deaths due to landslides, flash floods, cloudbursts, drowning, lightning, electrocution, and accidents; 304 injuries reported.
- Property Loss: Extensive damage to houses (both pucca and kaccha), shops, factories, labor sheds, animal shelters, and substantial crop losses in agriculture and horticulture.
- Public Infrastructure: Over ₹1,900 crore in damages to roads (including PWD), power supply, health, education, fisheries, rural and urban development, and animal husbandry.
Most affected districts include Mandi, Kangra, and Hamirpur, with severe crop and infrastructure losses.
Additionally, 91 deaths occurred due to monsoon-related road accidents.
Public Utilities and Infrastructure Disruptions
The SEOC report dated August 7, 2025, highlights ongoing disruptions:
- Roads Blocked: About 493 major roads and 3 national highways (NH-305, NH-21, NH-05) remain blocked by landslides and floods.
- Power Supply: Disruption of 1,120 distribution transformers (DTRs).
- Water Supply: 245 water schemes affected, threatening access to potable water for communities.
Key blockages include NH-21 between Mandi and Kullu and NH-305 near Banjar and Jhed.
Weather Forecast and Warnings
The India Meteorological Department’s forecast valid from August 7, 2025, includes:
- Isolated heavy rainfall expected throughout the week.
- Thunderstorms and lightning predicted in isolated areas.
- Minimum temperatures near normal or slightly below.
- Maximum temperatures showing a moderate increase.
The public is urged to remain vigilant due to the risks of further landslides and flash floods.
Himachal Pradesh remains vulnerable as the monsoon season continues, with thousands affected by damage, displacement, and disruption of essential services. Authorities are continuing with rescue and recovery operations and are urging residents to stay alert to the ongoing adverse weather. This situation highlights the pressing need for enhanced infrastructure and disaster management strategies to mitigate monsoon-related risks.
Himachal’s LPG Supply Hit Amid Global Tensions, Likely to Affect Hospitality Industry
Himachal Teen Survives 12-Minute Leopard Attack, Kills Predator in Self-Defense
Weather Forecast for Himachal Pradesh For the Next Two Weeks
Monsoon 2025: Himachal Pradesh Suffers 199 Casualties, Over ₹1,905.50 Cr in Damages
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