The financial condition of Himachal Pradesh is well known, as the state is burdened with debt. Chief Minister Sukhvinder Singh Sukhu addressed the state’s poor economic situation during the Monsoon Session of the Assembly. In his statement, CM Sukhu mentioned that the state’s financial condition is very critical.
CM Sukhu pointed out that the revenue deficit of the state is continuously increasing. To manage this situation, he announced that for the next two months, the salaries and allowances of the Chief Minister, Cabinet Ministers, and Chief Parliamentary Secretaries would be delayed. He also requested other members of the Assembly to do the same.
Jai Ram Thakur’s Criticism
In response to CM Sukhu’s statement, Leader of the Opposition Jai Ram Thakur expressed his views. He stated that he was not present in the Assembly when the CM made the statement, but he would review it.
Former Chief Minister Jai Ram Thakur criticized CM Sukhu for appointing a large number of Chief Parliamentary Secretaries (CPS). He argued that the BJP considers this appointment unconstitutional, and the matter is currently pending in court.
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Jai Ram Thakur said that the state’s financial condition would improve if the CM removed this unconstitutional group of CPS. He also mentioned that there is a large number of Cabinet-rank officers, which should also be reviewed by the government.
Reduction in Revenue Deficit Grant
It is important to note that the Revenue Deficit Grant for Himachal Pradesh, which was ₹8,058 crores for 2023-24, has been reduced by ₹1,800 crores to ₹6,258 crores. By 2025-26, it is expected to decrease by another ₹3,000 crores, bringing it down to ₹3,257 crores.
The state has yet to receive any funds from the ₹9,042 crores allocated under the Post-Disaster Needs Assessment (PDNA) from the central government. Additionally, the state has not received around ₹9,200 crores from the NPS contribution, despite multiple requests to the central government.
What Did CM Sukhu Present in the Assembly?
CM Sukhvinder Singh Sukhu explained, “The GST compensation stopped after June 2022, leading to an annual loss of around ₹2,500 to ₹3,000 crores. Restoring the Old Pension Scheme (OPS) has reduced the state’s borrowing rate by about ₹2,000 crores. Overcoming these challenges is not easy. The Himachal Pradesh government is trying to increase its revenue and reduce unproductive expenditures, but these efforts will take time to show results.”
