The State Secretariat of the Communist Party of India (Marxist), in its meeting held in Shimla, expressed serious concern over Himachal Pradesh’s rapidly deteriorating economic condition. The party alleged that under pressure from the BJP-led Modi government at the Centre, the state’s Congress government is also pursuing neoliberal policies that are worsening unemployment, inflation, and the agrarian crisis, increasing the financial burden on the people.
The party stated that the state is heading toward a severe economic crisis, with government debt now exceeding Rs 1 lakh crore. It said the revenue deficit grant earlier provided by the Centre, which was Rs 8,058 crore, has been reduced to Rs 6,258 crore. For the 2025–26 financial year, the state will receive only Rs 3,257 crore, marking a further reduction of Rs 3,000 crore. In addition, the Centre discontinued GST compensation to the state in 2022.
According to CPI(M), ”Himachal’s limited revenue resources have forced the state government to depend heavily on financial assistance and loans from the Centre. The debt-to-GSDP ratio has risen from 40 per cent in 2020 to 43 percent in 2025. The Fiscal Responsibility and Budget Management Act (FRBM) is also pressuring the state to reduce the fiscal deficit from 6 per cent to 4 per cent.” The Centre has further capped the state’s annual borrowing at Rs 7,000 crore, a move the party says has intensified after the state restored the Old Pension Scheme.
The CPI(M) claimed that this financial distress has made it difficult for the government to ensure the timely payment of salaries, pensions, and allowances. It is alleged that the Centre is using the crisis to push the state toward neoliberal reforms, including privatisation of essential services such as education, health, transport, electricity, and water. The party criticised the government’s move to halt regular recruitment and rely on temporary or fixed-term appointments like forest friends, patient friends, traffic friends, and animal friends—categories that, it said, do not receive minimum wages and face job insecurity.
The party also opposed the large-scale installation of prepaid smart electricity meters, alleging that this is a step toward privatising the power sector. It claimed that the work is being outsourced to private firms and warned that attempts are underway to dismantle the State Electricity Board.
The CPI(M) demanded that all vacant posts be filled immediately and that the installation of prepaid meters be halted. It also sought restoration of the financial assistance previously granted to Himachal as a special category state. The party urged the government to clear outstanding salaries of outsourced and scheme workers, pending dues of regular employees and pensioners, and the Rs 160 crore payment owed to apple growers under the Market Intervention Scheme.
The party further asked the government to expedite relief and rehabilitation for disaster-affected families, restore essential services in rural areas, and press the Centre to release the Rs 1,500 crore relief package announced by the Prime Minister.
The CPI(M) also voiced concern over rising communal incidents and urged strict action against organisations spreading divisive activities. It expressed concern over increasing cases of violence against women and Dalits, demanding immediate measures to curb such crimes and calling for an impartial inquiry into the allegations of sexual harassment and kidnapping against the BJP MLA from Churah.