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Himachal govt withdraws cabinet rank status of board chiefs in austerity push
Move aims to curb expenses amid ₹10,000-crore revenue loss, with a 20% salary deferment for advisers, chairpersons.
Facing a deepening fiscal crisis, the Sukhvinder Singh Sukhu-led Congress government on Tuesday withdrew cabinet rank status from chairpersons, vice-chairpersons, and advisers across all boards, corporations, and commissions with immediate effect.
The decision follows the discontinuation of the revenue deficit grant (RDG), which has left Himachal Pradesh staring at an annual revenue loss of approximately ₹10,000 crore.
The general administration department (GAD) has cancelled all perks associated with cabinet status, including official vehicles with police protocols.
The government has also mandated a 20% deferment of salaries and monthly emoluments for these functionaries until September 30, 2026.
Nearly 50 officials, including six high-profile advisers, are affected by the order.
Cost-cutting measures
A senior official said that the move is a part of the state’s strategy to transition toward a “self-reliant Himachal”. On an average, the perks, HRA, and hospitality allowances for a single cabinet-rank appointee cost the state exchequer between ₹2.5 lakh and ₹3 lakh a month.
The chief secretary has directed all administrative secretaries to ensure the instructions are implemented immediately. The order specifically targets political and principal advisers, as well as deputy chairpersons of various state-run bodies.
Mounting debt burden
The withdrawal of cabinet status is the latest in a series of measures by the Sukhu administration to keep the state’s economy afloat as it grapples with a total debt burden exceeding ₹80,000 crore. The crisis intensified following the 15th Finance Commission’s recent recommendations, which saw the stopping of the RDG.
The austerity move comes as the state struggles to fund the Old Pension Scheme (OPS) and the monthly ₹1,500 allowance promised to women.
By stripping political appointees of their status, the chief minister is attempting to demonstrate fiscal discipline to the Union government and signal to the public that the political class is sharing the financial burden.
