Shimla, Aug 29 (Representative) In a development reflecting Himachal Pradesh’s worsening financial crisis, Chief Minister Sukhvinder Singh Sukhu announced on Thursday that he and his team of ministers, Chief Parliamentary Secretaries (CPS) and all Principal Secretaries will forego their salaries and allowances for the next two months. In a statement on the state’s financial situation, Sukhu, who also holds the finance portfolio, explained that while various initiatives have been undertaken to boost state revenue, the benefits of these measures will take time to materialize. Sukhu appealed to all members of the ruling and Opposition benches to follow suit and defer taking their salaries to help mitigate the economic strain.
The Chief Minister pointed towards a significant reduction in the Revenue Deficit Grant, which decreased from Rs 8,058 crore in 2023-24 to Rs 6,258 crore this year.Projections indicate a further drop to Rs 3,257 crore by 2025-26. Additionally, the state is yet to receive any of the Rs 9,042 crore from the Central government allocated for the Post-Disaster Needs Assessment (PDNA).There is also an outstanding of Rs 9,200 crore in National Pension System (NPS) contributions from the Pension Fund Regulatory and Development Authority (PFRDA). The cessation of GST compensation payments since June 2022 has resulted in an annual revenue shortfall of approximately Rs 2,500-3,000 crore.
The restoration of the Old Pension Scheme (OPS) has further strained the state’s borrowing capacity by around Rs 2,000 crore, he said. To counter these financial difficulties, the government has been working to increase state income and reduce non-essential expenditures, though Sukhu emphasized that it will take time for these efforts to yield results. During the legislative Assembly session, Sukhu earlier reported an additional Rs 150 crore in revenue from liquor vend auctions and dismissed allegations of corruption. BJP Member Randhir Sharma had accused the Congress government of mishandling the liquor vend auctions, potentially, resulting in a Rs 200 crore loss to the state government.