Himachal Pradesh stares at Rs 8,000 crore loss, CM Sukhu announces six-month sal ...
The Himachal Pradesh government announced austerity measures for top officials while presenting a Rs 54,928 crore budget for 2026-27 on Saturday. Chief Minister Sukhvinder Singh Sukhu unveiled a six-month salary cut — including a 50% drop in his own pay. The move is aimed at easing fiscal pressure without impacting welfare schemes.The state authorities have been facing “extraordinary financial challenges” after the Centre discontinued the Revenue Deficit Grant with effect from April 1. Reports indicate this will be the first time since 1952 that Himachal Pradesh operates without this specific central assistance. According to Sukhu, the discontinuation will translate to an annual loss of over Rs 8,000 crore.
“We are working for the state and its people, not for elections. I seek six months’ support from all sections, and I assure that Himachal Pradesh will move towards self-reliance…I want to make it clear that this is only a temporary deferment, and as soon as the financial condition of the state improves, this amount will be returned,” he told reporters.
What are the changes?
The Himachal Chief Minister has announced stringent expenditure control measures — reducing the salary of top officials and all lawmakers for six months.
Here are the details:
[*] The salary of the Chief Minister will be reduced by 50% while ministers face a 30% cut. MLAs will see 20% of their salaries deferred for six months.
[*]Senior bureaucrats — including the Chief Secretary, Additional Chief Secretaries, Secretaries and DGP-rank officers — will see a 30% deferment while other officials see a 20% shift.
[*]Police officers from ADGP to DIG rank will also face 30% deferment, SP-level officers 20%, and other staff 20%,
[*]A planned 3% salary increment for employees will be deferred for six months. Group D employees will not receive the increase during this period.
Why is Himachal Pradesh facing a financial crunch?
Sukhu has blamed the Centre for discontinuing the RDG, terming it a major setback.
“We should have been given a green bonus. Instead, the Revenue Deficit Grant has been stopped, putting additional pressure on the state,” he said.
He also flagged pending dues of around Rs 7,000 crore under BBMB and GST compensation, estimated losses of Rs 25,000 crore due to GST rationalization and a rising debt burden, asserting that the government would move away from populist decisions and focus on fiscal consolidation.
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