Austerity U-turn: Himachal restores salaries of Ministers and Legislators
CM alone continues cut
Austerity U-turn: Himachal restores salaries of Ministers and Legislators
Shimla, June 10
In a major policy reversal, the Sukhvinder Singh Sukhu government has withdrawn its much-publicized decision to defer salaries of ministers, legislators and other top constitutional functionaries, raising questions over the effectiveness of what was projected as a major austerity measure barely two months ago.
The General Administration Department on Wednesday issued a notification withdrawing the salary deferment imposed in April on the Deputy Chief Minister, Council of Ministers, Speaker, Deputy Speaker and Members of the Himachal Pradesh Legislative Assembly.
The deferred amount would now be released along with the June salary payable in July. However, the 50 per cent salary deferment of Chief Minister Sukhvinder Singh Sukhu would continue until further orders.
The rollback marks yet another retreat from the government’s austerity agenda. Critics had questioned the April notification itself, arguing that the measure was more of a public relations exercise than genuine expenditure rationalisation because the deferred salaries were never surrendered and remained government liabilities.
The notification had explicitly provided for payment of the withheld amount at a later date, making it a deferment rather than a reduction in expenditure.
The government had projected the move as a key fiscal management initiative in the Budget amid concerns over shrinking revenues and the gradual withdrawal of the Revenue Deficit Grant.
Financial observers note that the deferment merely postponed liabilities instead of reducing expenditure and therefore offered little long-term relief to the state’s stressed finances.
According to sources, Chief Minister Sukhu informed the Cabinet last week that the state government’s financial position had improved and adequate funds were available, making continued salary withholding unnecessary.
The decision follows another recent rollback when the Chief Minister announced that the proposed deferment of three per cent salary of Class-I and Class-II officers would not be implemented.
Political analysts say the latest withdrawal has diluted the government’s austerity narrative. They argue that while symbolic measures may create an impression of shared sacrifice, meaningful fiscal correction requires structural expenditure reforms and reduction of recurring liabilities.
In comparison, steps such as withdrawing cabinet-rank facilities from political appointees were viewed by many as more tangible cost-saving measures.
With the state continuing to face mounting debt obligations and fiscal pressures arising from reduced central support and the phasing out of revenue deficit grants, the reversal has renewed debate over whether the government possesses a coherent long-term strategy to address Himachal Pradesh’s financial challenges.
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