Himachal Pradesh has once again come into the spotlight due to its worsening economic situation. Recently, when the state struggled to pay employee salaries, the gravity of the financial crisis became evident to the nation. Chief Minister of H.P. suspended his own and his ministers' salaries for two months, as the government was running out of funds. He also requested both ruling and opposition MLAs to follow suit, though opposition leader criticized the move, suggesting the ministers should not only halt their salaries but take more substantial steps.
Despite being in power for just over two years, the Congress-led government in Himachal Pradesh has accumulated an additional ₹19,000 crore in debt, raising the state's total debt to a staggering ₹88,000 crore. For a small hill state, this is an alarming burden. CM claims efforts are being made to boost government revenue and curb spending on non-productive activities. Yet, many of Congress' promises remain unfulfilled—such as offering only 125 units of free electricity instead of the pledged 300 and providing a monthly stipend of ₹1500 to just 2.9 lakh women in select districts, rather than all women aged 18-60 as promised.
The Congress government continues to blame the previous administration for the dire economic situation, yet remains silent on the costs of its populist schemes. This raises the question: Was Congress unaware of the state's financial state when making these promises?
R. Gandhi's election guarantees are leaving a significant economic impact on the states he campaigns in, even though he is not in power himself. The "Khatakhat Model" he champions, marked by promises of freebies, has caused fiscal strain not just in Himachal Pradesh but in Karnataka as well. Karnataka's Finance Minister went so far as to declare that ministers and MLAs should not request funds for development projects, as all available funds were consumed by fulfilling Gandhi's electoral guarantees.
The consequences are grim: 1,200 Karnataka farmers have tragically taken their own lives due to the state's inability to prioritize development over freebies. Yet, this failure has not stirred much media attention or political outrage. The Congress government in Karnataka, which campaigned on free schemes, is now struggling to manage its finances—a scenario mirrored in Himachal Pradesh and echoed in Punjab under the AaP's rule.
As elections approach in five more states, the trend of promising free schemes continues, with both ruling and opposition parties, including the BJP, succumbing to the temptation of announcing populist measures instead of focusing on sustainable policies. In Jammu and Kashmir, political parties like the PDP and National Conference have followed suit, making grand promises of freebies ahead of elections.
The situation in Himachal Pradesh is dire, with Congress having made a wide range of commitments—restoring the Old Pension Scheme, increasing minimum wages, constructing 5,000 km of roads, and supporting farmers with higher compensation for land acquisition and MSP for apples. Yet, the government's inability to fulfill these promises while balancing the budget has led to a growing financial crisis.
R. Gandhi's election promises often go unfulfilled, leading to financial instability in the states where Congress comes to power. In Madhya Pradesh, for example, Gandhi's promise to waive farmer loans within ten days of forming a government was only partially delivered, resulting in a significant electoral defeat for Congress in subsequent elections. Similarly, AAP’s free electricity and water schemes have shown limited success outside of Delhi and Punjab.
In conclusion, the "Khatakhat Model" of governance through electoral promises and freebies is raising concerns about its long-term impact on state economies, pushing states like Himachal Pradesh, Karnataka, and Punjab into deeper financial crises.
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