Expressing grave concern over the state’s dire financial situation, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced on Thursday that he, along with his ministers, chief parliamentary secretaries, and chairpersons and vice-chairpersons of various boards and corporations, would defer their salaries and allowances for two months.
While speaking in the state assembly, Sukhu highlighted that the Revenue Deficit Grant (RDG)—a financial aid provided by the central government to help states bridge the gap between their revenue receipts and expenditures—stands at ₹8,058 crore for the fiscal year 2023-24.
He further noted that the grant has been reduced by ₹1,800 crore to ₹6,258 crore for the current financial year.
“In 2025-26, the revenue deficit grant will be further slashed by ₹3,000 crore to just ₹3,257 crore, making it even more challenging for us to meet our financial needs,” he added.
Sukhu mentioned that the government is striving to increase revenue and cut down on unproductive expenditures, though the benefits of these measures may not be immediately realized.
The chief minister also stated that no funds have been released for the ₹9,042 crore Post-Disaster Need Assessment (PDNA) meant for repairing damage to roads, bridges, and infrastructure caused during the 2023 monsoon season, exacerbating the state’s fiscal difficulties.
Additionally, Sukhu pointed out that ₹9,200 crore deducted from employees under the National Pension Scheme (NPS) has not been refunded by the Centre, despite repeated requests from the state government.
He also emphasized that the cessation of GST compensation from the Centre since June 2022 has resulted in an annual revenue shortfall of ₹2,500-3,000 crore. The state’s borrowing limit was further reduced by ₹2,000 crore following the reinstatement of the Old Pension Scheme (OPS), adding to the financial strain.
Sukhu called on other assembly members to also defer their salaries and allowances in a show of solidarity.
He blamed the previous BJP government for the current situation, stating, “The state’s condition is poor, and the responsibility lies with the previous BJP administration. They received approximately ₹10,000 crore from the revenue deficit grant as per the 15th Finance Commission, and the grant has been decreasing ever since,” he remarked later at a press conference.
