Shimla, Sept 3,
It is the first time in the state’s history that over 2 lakh employees and approximately 1.5 lakh pensioners have not received their dues by the 2nd of the month, heightening concerns among these groups. Though no official word has been received yet, but seems that amidst an ongoing financial crisis in Himachal Pradesh, the disbursement of salaries and pensions to state employees and pensioners has been significantly delayed.
Typically, even when the 1st of the month falls on a Sunday, the state government ensures that salaries and pensions are credited either on the preceding Saturday or on Sunday itself. However, this month, no such credits were made, a delay that reflects the depth of the economic challenges facing the state. The situation has prompted the opposition to bring a motion of attention in the state assembly, but it was dismissed by the Speaker due to the absence of opposition members in the House.
Subhash Verma, General Secretary of the Pensioner Welfare Association Shimla Urban Unit, expressed his concern, stating that this is an unprecedented situation. Pensioners, who had been waiting anxiously for their pensions, are now urging the government to resolve the issue and release the payments as soon as possible.
In response to the crisis, Chief Minister Sukhvinder Sukhu, along with Cabinet Ministers and Chief Parliamentary Secretaries (CPS), has deferred their salaries for the months of August and September, opting to receive them in October instead. The Chief Minister has also downplayed the severity of the situation, denying that the state is facing an economic crisis.
Despite these assurances, the state’s financial woes are evident. Himachal Pradesh is expected to spend approximately ₹1,437 crore on salaries and ₹830 crore on pensions during the 2024-25 fiscal year. However, the state’s economy has been severely impacted by rising debt levels and a continuous reduction in the Revenue Deficit Grant (RDG) from the central government. Under the 14th Finance Commission, Himachal received ₹40,624 crore, but this amount decreased to ₹37,199 crore under the 15th Finance Commission. Further cuts are expected in the coming years.
The cessation of GST compensation payments and the withdrawal of the central government’s matching grant (3000 cr) for the New Pension Scheme (NPS) have further strained the state’s finances. Additionally, the reduction of the borrowing limit from 5% to 3.5% of the gross domestic product (GDP) has curtailed the state’s ability to raise funds.
Himachal Pradesh’s debt has now ballooned to ₹94,000 crore, with outstanding liabilities to employees exceeding ₹10,000 crore. The previous government had granted a new pay scale to employees and pensioners effective from January 2016, but arrears remain unpaid, adding to the financial burden. While an installment of ₹30,000 to ₹40,000 was disbursed before the December 2022 assembly elections, many employees and pensioners are still owed significant amounts.
According to a white paper issued by the state government in 2023, Himachal Pradesh’s debt stood at ₹47,000 crore during the tenure of the former Virbhadra Singh government. By the time the previous BJP government left office, this figure had risen to ₹76,000 crore. The current debt level, coupled with the state’s limited resources for development work, has exacerbated the financial crisis. The government’s current priority is to manage its debt obligations, interest payments, and salary and pension commitments, leaving little room for other expenditures.
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