Shimla, Himachal Pradesh
The Himachal Pradesh government, which is facing financial challenges, has once again decided to borrow ₹600 crore from the market. With this fresh borrowing, the state’s total debt burden will rise to more than ₹1.04 lakh crore. This is the sixth loan being taken by the state government during the financial year 2026-27.
The Finance Department has issued a notification regarding the fresh ₹600 crore borrowing. The government will re-issue the 7.78% SGS-2044 stock. The securities will be auctioned on October 6 through the e-Kuber system under the Reserve Bank of India’s Mumbai-based arrangement. The loan amount is expected to be credited to the state government’s account on October 7.
The loan is being raised for a period of 18 years and will mature on June 24, 2044. Interest on the loan will be paid twice a year, on December 24 and June 24.
Earlier in the financial year 2026-27, the state government had borrowed ₹900 crore in April, ₹500 crore in May, ₹700 crore in two installments in June, and another ₹700 crore in July. By July, the government had already borrowed ₹2,800 crore. With the additional ₹600 crore borrowing in October, the total borrowing during the current financial year will reach ₹3,400 crore.
During the previous financial year 2025-26, the state government borrowed ₹41,173 crore and repaid ₹32,004 crore.
Rising financial pressure is one of the major reasons behind the state’s increasing debt burden. Earlier, Himachal Pradesh used to receive ₹8,000 crore to ₹10,000 crore annually as Revenue Deficit Grant, but this assistance has now been discontinued. According to the state government, nearly ₹80 out of every ₹100 is spent on salaries, pensions, and interest payments on existing debt. During the current financial year, the government is required to pay ₹7,271 crore only as interest.
