Himachal Day Celebrations: CM Sukhu Highlights Achievements Amid Financial Challenges

Celebrating Himachal Day in Reckong Peo

Munish Sood
Mandi

During the state-level Himachal Day festivities in Reckong Peo, Chief Minister Sukhvinder Singh Sukhu emphasized both the accomplishments of his administration and the financial difficulties it faces, stating that all ten promises made by his government have been fulfilled despite inheriting a significant fiscal crisis from the previous BJP administration.

Financial Strain and Debt Burden

In his address, the Chief Minister noted that in the inaugural Cabinet meeting, the government reinstated the Old Pension Scheme (OPS) for 136,000 employees. However, he stressed that the state is under considerable financial pressure, having inherited a debt of ₹76,000 crore and outstanding employee liabilities nearing ₹10,000 crore.

He highlighted the cessation of the Revenue Deficit Grant (RDG) from the Centre, which had been a source of support for Himachal Pradesh since 1952, estimating an annual loss between ₹8,000 and ₹10,000 crore. Sukhu pointed out that while the previous administration received approximately ₹60,000 crore from the Centre over five years, including ₹47,000 crore from RDG and ₹13,000 crore in GST compensation, his government has only received ₹17,000 crore to date. This financial strain has compelled the state to cut its budget by ₹3,000 crore this fiscal year, marking a historic first.

Employee Relief Measures

Despite the financial hurdles, the Chief Minister announced significant relief initiatives for employees. He confirmed that all outstanding gratuity and leave encashment dues for Class IV employees who retired between January 1, 2016, and December 31, 2021, will be settled by May 2026, with an allocation of ₹50 crore.

Moreover, contractual employees who have served continuously for two years by March 31, 2026, will be regularized. The government has also raised the daily wages for laborers by ₹25 and established a minimum monthly salary of ₹13,000 for outsourced workers.

Austerity Measures and Women-Centric Initiatives

On the topic of austerity, Sukhu confirmed that the temporary salary deferment of 20-30% for the Chief Minister, ministers, MLAs, Chief Secretary, DGP, and senior officials will persist, although some relief has been granted to Class I and Class II officers.

Additionally, the Chief Minister announced that women aged 21 and older in Kinnaur district, earning up to ₹2 lakh annually, will receive ₹1,500 monthly starting April 1. He reiterated the government's commitment to welfare, stating that under the 'Apna Parivar Sukhi Parivar Yojana', one lakh underprivileged families will benefit from 300 units of free electricity, and eligible women will receive ₹1,500 monthly under the Indira Gandhi Pyari Behna Sukh Samman Yojana.

Compassionate Appointments and Social Welfare Focus

Sukhu also mentioned that the income threshold for compassionate appointments has been raised from ₹2.5 lakh to ₹3 lakh to broaden the beneficiary base. To date, 640 appointments have been made under this category, with an additional 980 cases approved.

He further discussed the 'Sukh Ashray Yojana', under which the state government is responsible for nearly 6,000 children, reaffirming its commitment to social security and welfare.

Deputy CM's Remarks on Fiscal Responsibility

In a related event in Shimla, Deputy Chief Minister Mukesh Agnihotri echoed the fiscal concerns, asserting that the Old Pension Scheme will remain in effect despite financial constraints. He noted that the government has repaid ₹26,000 crore in loans over the last three years and approved 99,799 new pension cases. The state has also decided to increase the disability pension to ₹3,000 per month.

Agnihotri confirmed that the pending gratuity and leave encashment dues for Class IV employees will be settled by May, involving an expenditure of ₹50 crore, and reiterated that salary deferment for senior officials will continue.

Balancing Welfare with Financial Discipline

During the Himachal Day celebrations, the Sukhu government defended its welfare-oriented governance approach while acknowledging the economic challenges. The Chief Minister emphasized the importance of financial discipline and resource mobilization, asserting that the state is committed to achieving self-reliance while ensuring that social welfare programs continue to benefit all segments of society.