Himachal financial crisis: CM Sukhu, ministers, CPS to forego salaries, allowances for 2 months

Shimla: Under increasing pressure from Opposition BJP members in the House and employees’ unions outside, Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu has decided to implement stringent austerity measures to drive significant savings and ensure the optimal distribution of resources for public welfare and development.

In a surprising announcement in the state Assembly, Chief Minister Sukhu revealed that his ministers, Chief Parliamentary Secretaries (CPS), and Cabinet-rank appointees—such as chairmen and vice-chairmen—will forgo their salaries and allowances for the next two months due to the ongoing financial crisis in the state.

Sukhu stated, “After discussion in the cabinet, all the members of the cabinet decided that until the state sees good improvement in the coming times, we will not take any salary, nor TA, nor DA for two months.”

He acknowledged that the state government is grappling with a severe fund crisis that could jeopardise its ability to meet major developmental commitments. To address this crisis, the government has opted for a symbolic gesture of relinquishing salaries and allowances by the cabinet members during this period.

Sukhu has faced continuous criticism from the Opposition for appointing personal favourites to cabinet-rank positions, as well as for the inclusion of OSDs (Officers on Special Duty) and advisors. Additionally, employees’ unions have been vocal about the delayed release of revised salaries and dearness allowances (DA). They have staged rallies, accusing Sukhu of allowing ministers to spend significant sums on renovating their residences and offices while the state faces a financial crisis.

“The financial condition of the state is not good. There are many reasons for this. The Revenue deficit grant, which was Rs 8,058 crore, has been reduced to Rs 6,258 crore. Next year, in 2025-26, it will be further reduced by Rs 3,000 crore to Rs 3,257 crore,” Sukhu explained in the Assembly.

He also highlighted that out of approximately Rs 9,042 crore allocated for Post-Disaster Assessment, the Central government has not provided any grant to the state. Furthermore, the Non-Plan Schemes (NPS) contribution of around Rs 9,200 crore from the Pension Fund Regulatory and Development Authority (PFRDA) has yet to be received from the Union government.

GST compensation has been halted since 2022, reducing the state’s revenue by approximately Rs 2,500-3,000 crore. The implementation of the Old Pension Scheme (OPS) has also led to a reduction in the state’s borrowing limit by around Rs 2,000 crore, exacerbating the financial strain.

In response, Leader of Opposition Jai Ram Thakur criticised the decision to defer salaries and allowances, suggesting that political appointees, including OSDs and chairmen, should be asked to resign instead. Thakur also accused the government of engaging in phone tapping and drone surveillance against him.

He raised this concern through a point of order in the Assembly on Friday, stating, “Drones manned from the residence of the SP were flown over my house since 4 am today, which is very serious and totally unacceptable.”

Thakur added, “Earlier, during political turmoil earlier this year, there was surveillance on every person and vehicle entering my house. Phones are being tapped, besides keeping surveillance on elected representatives, which is a breach of my privacy. The officials are crossing the limits,” he said.

Chief Minister Sukhu however dismissed allegations levelled by the Leader of Opposition and said he (Thakur) was only trying to create sensation.