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Himachal defers 30% of top officials’ salaries for six months
This move is part of an effort to manage the state’s finances and navigate the fiscal challenges arising from the discontinuation of the Revenue Deficit Grant by the Centre
The Himachal Pradesh government has issued a formal notification regarding the temporary deferment of a portion of the monthly salaries of certain categories of government employees for a period of six months. The deferment will be effective from April’s salaries, to be paid in May.
According to the notification, the deferment follows a tiered structure. As much as 30% salaries will be withheld of chief secretary, additional chief secretaries, principal secretaries, director general of police, additional director general of police, principal chief conservator of forests (HOFF), principal chief conservator of forests and additional principal chief conservator of forests.
As much as 20% of the salaries of secretaries, heads of departments, inspector general of police, deputy inspector general of police, senior superintendent of police, police officers up to the level of SPs, chief conservator of forests, conservator of forests and other forest officers up to the DFOs level, has been deferred.
Presenting the budget for the financial year 2026-27, chief minister Sukhvinder Singh Sukhu had on March 21 announced deferment in the salaries of the chief minister, ministers, MLAs and officers. The state government has already deferred the portions of salaries of chief minister, ministers and MLAs.
This move is part of an effort to manage the state’s finances and navigate the fiscal challenges arising from the discontinuation of the Revenue Deficit Grant (RDG) by the Centre, following the recommendations of the 16th Finance Commission. The RDG was traditionally provided to states like Himachal Pradesh to bridge the gap between their limited revenue-earning capacity—restricted by hilly terrain and ecological protections—and their high expenditure on public services.
The 16th Finance Commission, however, has moved away from these routine grants, citing a need for states to reduce their dependence on central aid and curb high “committed expenditures” like salaries and pensions. For Himachal Pradesh, this translates to an estimated annual loss of over ₹8,000 crore, a staggering blow for a state already burdened by debt exceeding ₹1 lakh crore.
