Shimla, Sept. 24 -- Citing "wrong precedent" to other states, the Union finance ministry has turned down the request of the Himachal government to increase the borrowing limit to help it tide fiscal challenges. It also stressed that states should "strengthen their economy".

In July this year, chief minister Sukhvinder Singh Sukhu had called on the Union finance minister Nirmala Sitharaman at New Delhi and urged for an increase in borrowing limit of the state. During the meeting, the CM had apprised Union minister Sitharaman of the financial situation of Himachal and had urged for increasing the borrowing limit of the state.

Sukhu had requested the finance minister for permission to borrow an additional 2%, as in May 2023 the central gov...