The Himachal Pradesh Government on Wednesday withdrew its April 18 notification that had deferred a portion of the salaries of the Deputy Chief Minister, Ministers, Speaker, Deputy Speaker and MLAs as part of austerity measures introduced in view of the state’s financial crisis.
Chief Secretary KK Pant issued a fresh notification revoking the earlier order. However, the 50 per cent deferment of Chief Minister Sukhvinder Singh Sukhu’s salary will continue until further orders. The notification states that the deferred salary amount of other elected representatives will be released along with their salary for June 2026.
The salary deferment measure was announced by Chief Minister Sukhu while presenting the 2026-27 Budget on March 21. Citing the state’s deteriorating financial position following the discontinuation of the Revenue Deficit Grant (RDG) by the Centre, he had described the move as a temporary arrangement until the financial situation improved.
Subsequently, a notification issued on April 18 provided for a 50 per cent deferment in the Chief Minister’s salary, 30 per cent in the salaries of the Deputy Chief Minister, Ministers, Speaker and Deputy Speaker and 20 per cent in the salaries of MLAs.
At the time, Sukhu had maintained that the state was compelled to adopt stringent cost-cutting measures due to the withdrawal of the RDG. He had stated that Himachal Pradesh would lose at least Rs 8,000 crore annually because of the decision, significantly impacting its finances.
The Revenue Deficit Grant was discontinued by the Union Ministry of Finance following the recommendations of the 16th Finance Commission. The decision affected 17 states across the country, including Himachal Pradesh, prompting the state government to announce a series of austerity measures to manage its fiscal challenges.
