Himachal Pradesh Faces Financial Crisis: CM Sukhu and Ministers to Forego Salaries for Two Months

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced Thursday that he and his cabinet members will not take their salaries or allowances for the next two months in response to the state’s severe financial strain. The decision comes as Sukhu highlighted the state’s dire financial situation, driven by delays in central funding and other fiscal challenges.

In a statement to the state assembly, Sukhu revealed that the Revenue Deficit Grant (RDG)—a crucial financial aid from the central government meant to cover the gap between the state’s revenue and expenditure—has been significantly cut. For the fiscal year 2023-24, the grant was reduced from ₹8,058 crore to ₹6,258 crore. Looking ahead, it is projected to decrease further to ₹3,257 crore by 2025-26, exacerbating the state’s financial difficulties.

Sukhu also criticized the central government for not releasing funds to address the ₹9,042 crore Post-Disaster Need Assessment (PDNA) required for repairing infrastructure damaged during the 2023 monsoon. Additionally, he pointed out that ₹9,200 crore deducted from employees under the National Pension Scheme (NPS) remains unreimbursed despite repeated requests. The cessation of GST compensation since June 2022 has led to a revenue shortfall of ₹2,500-3,000 crore annually, and a reduction in the state’s borrowing limit by ₹2,000 crore due to the reinstatement of the Old Pension Scheme (OPS) has further strained finances.

Sukhu urged fellow assembly members to join him in deferring their salaries and allowances, highlighting the gravity of the situation.

Blaming the previous BJP government for the financial woes, Sukhu argued that the grant, which was around ₹10,000 crore under the 15th Finance Commission, has been reduced since then, worsening the current financial crisis.