Himachal Pradesh Chief Minister Announces Major Budget Cuts and Salary Delays
Significant Budget Reductions in Himachal Pradesh
In a move to address financial challenges, Chief Minister Sukhu of Himachal Pradesh announced on Friday a six-month delay in salaries for ministers, legislators, and senior officials, alongside a substantial budget cut of ₹3,586 crores. Presenting the budget for 2026-27 in the state assembly, he called for cooperation from all sectors, emphasizing the state's commitment to self-reliance.
The total budget allocation has decreased from ₹58,514 crores in 2025-26 to ₹54,928 crores for the upcoming fiscal year, reflecting the "extraordinary financial challenges" faced after the central government halted revenue deficit grants. Sukhu stated, "Our focus is on serving the state and its people, not on elections. I seek six months of cooperation from all and assure that Himachal Pradesh will move towards self-sufficiency."
Salary Cuts and Financial Measures
The Chief Minister outlined strict expenditure control measures, revealing that 50% of his salary, 30% of ministers' salaries, and 20% of legislators' salaries will be suspended for six months. Additionally, senior officials, including the Chief Secretary and Director General of Police, will see a 30% cut in their salaries, while other officials will face a 20% reduction. Police officers from the rank of ADGP to DIG will also experience a 30% salary cut, with SP rank officers facing a 20% reduction.
Furthermore, the planned 3% salary increase for employees has been postponed for six months, affecting Group D staff as well. The government hinted at seeking similar voluntary salary suspension measures from the judiciary. During the budget presentation, opposition members protested, causing disruptions that temporarily halted proceedings.
Budget Presentation and Future Commitments
After a 30-minute break, the proceedings resumed, and the Chief Minister continued his address, delivering a budget speech spanning 134 pages over nearly four hours. He attributed revenue concerns to the central government's decision to discontinue revenue deficit grants, labeling it a significant setback. Sukhu remarked, "We should have received green benefits, but instead, the cessation of these grants has placed additional pressure on the state."
He also raised issues regarding pending dues of approximately ₹7,000 crores under BBMB and GST compensation, an estimated loss of ₹25,000 crores due to GST rationalization, and the increasing debt burden. Despite financial constraints, the government reiterated its commitment to fulfilling electoral promises gradually, announcing ₹500 crores for over 300 pending development projects in rural areas.
Social Welfare Initiatives and Agricultural Support
The government has launched the "Chief Minister's Sukhi Parivar Yojana," aimed at benefiting one lakh poor families with 300 units of free electricity and phased financial assistance. Social security measures have been expanded, including an increase in pensions for visually impaired individuals to ₹3,000 per month, with ₹1,544 crores allocated for women, child development, and social welfare.
The budget also focuses on strengthening the rural economy by raising the minimum support price (MSP) for major crops and allocating ₹734 crores for animal husbandry. A state farmer commission has been announced, along with a ₹300 crore scheme for nomadic communities. Additionally, ₹62 crores have been earmarked for poultry development, and natural farming will be promoted under the Rajiv Gandhi Natural Agriculture Scheme. A new scheme for fishermen will provide subsidies for equipment and infrastructure, alongside the establishment of an integrated aqua park in Nadaun.