Shimla, Aug 29,
Responding to the dire financial situation of Himachal Pradesh CM Sukhwinder Singh Sukhu announced that, he, along with the members of his Assembly constituency and the Chief Parliamentary Secretaries, will defer their salaries and allowances for two months. He also urged other members of the Assembly to voluntarily defer their salaries and allowances to help manage the state’s financial crisis.
In today’s session of the Himachal Pradesh Vidhan Sabha, Chief Minister Sukhvinder Singh Sukhu expressed deep concern over the state’s financial condition. He highlighted that the financial situation of the state is precarious due to several key factors. The Revenue Deficit Grant, which stood at ₹8,058 crore in the year 2023-24, has been reduced by ₹1,800 crore this year, bringing it down to ₹6,258 crore. The grant is expected to decrease further by ₹3,000 crore next year (2025-26), leaving only ₹3,257 crore.
CM Sukhu also pointed out that out of the ₹9,042 crore required under the Post-Disaster Needs Assessment (PDNA), no funds have been received from the central government so far. Additionally, approximately ₹9,200 crore under the NPS contribution is yet to be received from the Pension Fund Regulatory and Development Authority (PFRDA), despite repeated requests to the central government.
Furthermore, the state has been facing a significant revenue shortfall since the discontinuation of GST compensation after June 2022, resulting in an annual loss of approximately ₹2,500-3,000 crore. The restoration of the Old Pension Scheme (OPS) has also led to a reduction in the state’s borrowing capacity by about ₹2,000 crore.
Given these challenges, CM Sukhu emphasized that overcoming the current financial difficulties will not be easy. He assured the Assembly that the state government is making efforts to increase revenue and reduce unproductive expenditure, although the results of these efforts will take time to materialize.
Noteworthy that the Sukhu administration is under intense pressure due to the financial condition of the State, wherein critics of the State government had been demanding that government should first cut down on its expenses before pulling back subsidies and incentives given to a common citizen.
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