Himachal faces financial crisis, CM Sukhu, ministers defer drawing salary for 2 months

The chief minister laid out a statement on the financial condition of Himachal Pradesh, claiming that the funds from the Centre had not reached the state.

Published on: Aug 29, 2024, 23:17:27 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Expressing deep concern over the state's grim financial condition, Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Thursday announced that he, his ministers, chief parliamentary secretaries and chairpersons and vice-chairpersons of boards and corporations would defer drawing their salaries and allowances for two months.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu speaks during the Monsoon session of the Himachal Pradesh Legislative Assembly, in Shimla. (PTI)

Speaking in the state assembly, Sukhu revealed that the Revenue Deficit Grant (RDG)– financial support provided by the central government to states to help cover the gap between their revenue receipts and revenue expenditure– for the fiscal year 2023-24 stands at ₹8,058 crore.

He said the grant has only been reduced by ₹1,800 crore to ₹6,258 crore in the current financial year.

"In 2025-26, the revenue deficit grant will be reduced by another ₹3,000 crore to a mere ₹3,257 crore, which will make it even tougher for us to meet our needs," he added.

Also Read | Kangana Ranaut faces more heat as Himachal Pradesh assembly adopts resolution against her

Sukhu said the government was making all efforts to boost revenue and cut unproductive spending, but the benefits of these efforts are not expected to be realised immediately.

The chief minister also said no funds have been released against the ₹9,042 crore Post-Disaster Need Assessment (PDNA) to repair damage to roads, bridges and infrastructure caused during the monsoon in 2023, adding to the state's fiscal challenges.

₹9,200 crore deducted from employees under the National Pension Scheme (NPS) has not been refunded by the Centre despite numerous requests from the state government, according to Sukhu.

Also Read | Himachal assembly passes bill raising marriage age for women

The chief minister also pointed out that the cessation of GST compensation from the Centre since June 2022 has led to an annual revenue shortfall of ₹2,500-3,000 crore. The state's borrowing limit was reduced by ₹2,000 crore following the reinstatement of the Old Pension Scheme (OPS), further straining the state's finances.

Sukhu urged other members of the assembly to follow his lead in deferring their salaries and allowances.

Sukhu blames previous BJP govt

“The state's situation is not good, and if anyone is responsible for this, it is the previous BJP government. They had received around ₹10,000 crore from the revenue deficit grant according to the 15 Finance Commission, and since then this grant has been reducing,” Sukhu later said at a press conference.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Get the latest India News, breaking headlines and real-time updates from across the country. Stay informed about politics, government policies, crime, weather and major national developments.