Himachal CM Announces Six-Month Salary Cuts For Ministers, Legislators & Senior Officials

(MENAFN- Live Mint) In a significant fiscal crackdown, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday announced a six-month salary deferment for ministers, MLAs, and top-tier bureaucrats, alongside a ₹3,586-crore reduction in the state's total budget.

While presenting the 2026-27 budget in the Vidhan Sabha, the Chief Minister called for collective cooperation across all sectors, emphasizing a transition toward state self-reliance. The overall budget outlay has contracted from ₹58,514 crore in 2025-26 to ₹54,928 crore for the upcoming fiscal year.

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Sukhu attributed this decline to " extraordinary financial challenges" caused by the central government's decision to stop the Revenue Deficit Grant (RDG).

"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," Sukhu said.

Under these rigorous cost-cutting protocols, the Chief Minister will defer 50% of his own salary. Ministers will see a 30% deferment, while MLAs will face a 20% reduction for six months. High-ranking officials - including the Chief Secretary, Secretaries, and DGP-level officers - will have 30% of their pay deferred, with other senior staff seeing a 20% cut.

The deferment also extends to the police force: officers from ADGP to DIG rank face a 30% cut, while SP-level officers and general staff will see 20% of their pay held back. Additionally, a scheduled 3% annual increment for state employees is suspended for half a year, though Group D workers are exempt from this specific freeze. The administration further suggested it might petition the judiciary to adopt similar voluntary austerity measures.

The session faced significant friction as opposition members launched protests, storming the well of the House and forcing a short adjournment. Once proceedings resumed after thirty minutes, Sukhu completed his four-hour delivery of the 134-page speech.

"We should have been given a green bonus. Instead, the Revenue Deficit Grant has been stopped, putting additional pressure on the state," the CM said.

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He also flagged pending dues of around ₹7,000 crore under BBMB and GST compensation, estimated losses of ₹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.

Despite these hurdles, the government pledged to uphold its election promises. It allocated ₹500 crore for 300 stalled rural development projects and introduced the "Mukhyamantri Apna Sukhi Parivar Yojana." This new initiative aims to support one lakh impoverished families with phased financial aid and 300 units of free electricity.

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