Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Tuesday ruled out a rollback of the Old Pension Scheme (OPS), asserting that the state will generate its own resources despite the finance department’s recommendation to switch to the Centre’s Unified Pension Scheme (UPS). To bridge the fiscal gap, Sukhu confirmed he is seeking a meeting with Prime Minister Narendra Modi after the February 17 assembly session to request a special grant for this financial year and the formation of a high-level committee to assess the financial health of hill states.
The CM emphasised that the grant is essential to stabilise the state’s treasury following the discontinuation of the Revenue Deficit Grant (RDG), which has hit 15% of Himachal’s budget.
Dismissing the finance department’s February 8 warning that the UPS is necessary to unlock ₹1,800 crore in borrowings, the CM assured employees that their pensions are secure. “I am the son of an employee so I understand the pain. The finance department makes recommendations but I assure that we will generate our resources and OPS will not be stopped,” he said. “No one’s pay or pension will be stopped, neither will any welfare schemes be affected. This is a fight of the state’s interest and will be fought at all levels,” he said.
While Sukhu has reached out to the opposition BJP, led by his predecessor Jai Ram Thakur, to present a united front to the Centre, the party has so far cold-shouldered his overtures. “This is a fight for the state’s interest. Every party should raise their voice for Himachal’s rights,” Sukhu said, adding that he also plans to meet Union minister JP Nadda, who belongs to Himachal, during his visit to Delhi.
{{/usCountry}}While Sukhu has reached out to the opposition BJP, led by his predecessor Jai Ram Thakur, to present a united front to the Centre, the party has so far cold-shouldered his overtures. “This is a fight for the state’s interest. Every party should raise their voice for Himachal’s rights,” Sukhu said, adding that he also plans to meet Union minister JP Nadda, who belongs to Himachal, during his visit to Delhi.
{{/usCountry}}Justifying the current crunch, Sukhu accused the previous BJP government of leaving the state in financial ruin. He claimed that while the previous BJP regime received over ₹54,000 crore in grants, it failed to clear ₹10,000 crore in employee arrears and instead distributed ₹5,000 crore in “election-year freebies”.
“In three years, the Congress government received ₹17,000 crore in RDG, but not a single rupee in GST compensation. Yet, the government didn’t withhold anyone’s salary or pension. It didn’t allow any welfare schemes to be discontinued. We even gave the Old Pension Scheme to employees. It is due to our management of finances we were able to do so,” he said.