HP CM, ministers delay withdrawals by two months, Sukhu calls national finances 'grave'

Himachal Pradesh Chief Minister Sukhwinder Singh Suhu on Thursday announced that he, his ministers, chief parliamentary secretary and chairman and vice-chairman of boards and companies will defer salary and allowances for two months, citing reasons It's the state's “dire financial situation”.

The Chief Minister made the announcement in Parliament and urged other members of the House to follow suit.

He said the government was working hard to increase revenue and reduce unproductive expenditures, but the effects would take some time to show.

Expressing concern over the dismal financial position of the state, Suhu said the Revenue Deficit Grant (RDG) for 2023-24, which stood at Rs 8,058 crore, has been reduced by Rs 1,800 crore to Rs 6,258 crore in the current financial year.

“In 2025-26, the revenue deficit subsidy will be reduced by another Rs 3,000 crore to only Rs 3,257 crore, which will make it harder for us to meet our needs,” he added.

Suhu said the Center has not yet released any grant under the Rs 9,042-crore Post-Disaster Need Assessment (PDNA) for damage to roads, bridges and infrastructure during the 2023 monsoon.

He added that despite repeated pleas from the state government, the Center has so far not refunded Rs 9,200 crore deducted from employees under the National Pension Scheme (NPS).

Moreover, the Center has stopped providing GST compensation from June 2022, reducing revenue by Rs 2,500-3,000 crore annually, the Chief Minister said, adding that the state borrowing limit has also been reduced by Rs 2,000 crore after its resumption. Old Pension Scheme (OPS).

(This report has not been edited by News18 staff and is published from associated news agency – PTI)