In order to meet its developmental needs and salaries and pensions towards the retired and serving employees of the state, Himachal government will raise Rs 500 crore loan, The Tribune has reported.

As per the report, the state was ridden in a debt of Rs 48,973 crores by the end of August 2018. The state government since December last year and August 2018 has raised loans worth Rs 2,587 crore to meet its requirements.

The latest loan of Rs 500 crore will increase the total loan amount over the Rs 3,000 crore mark. According to a notification issued on Friday (23 November) by the State’s department of finance, the government has taken the loan with the consent of the central government as required under the Article 293 (3) of the Indian constitution.

As per the report, during the last two days, Chief Minister Jairam Thakur has held meeting with officials of various departments of the state to review the progress of ongoing projects and sought the details of the spending and programmes to be included in the 2019-20 budget.

“The committed liability on account of the salary burden of all government employees as of now is Rs 9,500 crore annually, besides Rs 4,900 crore pensionary liability,” officials told the paper.

The government is also planning to increase its revenue by focusing on sectors like power, infrastructure, industry, tourism, agriculture-horticulture and allied sector and services.