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 government reduced the borrowing limit of Himachal and other states from 5% to 3% of Gross Domestic Product (GDP). This has further increased the difficulties of the state government which is facing financial crisis. Pointing towards the rising cost of the infrastructure development in the hill state, CM had argued that high altitude, tough terrain and unpredictable weather escalates construction costs as he made a pitch "Himachal deserves special consideration for additional central resources." During the meeting, Sukhu had highlighted that under the previous BJP government, a Rs.1.4 lakh crore loan was taken in one year due to a 5% loan cap. With the Centre reducing the cap to 3%, the state now receives Rs.6,000 crore less in loan eligibility. The CM urged the Union finance minister to raise the limit by 2%. He also shared steps taken by the state to boost financial resources despite fiscal challenges. The state government has a debt of Rs.1.03 lakh crore. The committed liability of the government on payment of salary and DA to employees and the pensioners was about Rs.30,000 crore per annum and 13% pending DA instalments and arrears. "Had the Centre increased the borrowing limit it would have eased out day to day functioning. Himachal has been bearing the fiscal liabilities of the previous BJP government, discontinuation of GST compensation and the tapering revenue deficit grant (RDG) has aggravated the fiscal challenges for the state," said industry minister Harshwardhan Chauhan. Chief minister's principal media advisor Naresh Chauhan said, "Himachal has been reeling under monsoon inflicted devastation and we have not recovered any special grant from the centre. Instead they are not even considering our genuine request of enhancing the borrowing limit." As per the State Disaster Management Authority (SDMA) as on Tuesday morning this monsoon season the state had suffered losses of 4,861 crore (4,86,116 lakh)....