Chief Minister Sukhu Announces Delayed Salaries for Ministers and Chief Parliamentary Secretaries Amid Financial Crisis.

Shimla:

In a recent statement addressing the state assembly, Chief Minister Sukhvinder Singh Sukhu highlighted the dire financial situation facing the state. The Revenue Deficit Grant for the fiscal year 2024-25 has been reduced by Rs. 1800 crore to Rs. 6258 crore from Rs. 8058 crore in the previous year. Furthermore, projections suggest a further reduction to Rs. 3257 crore by 2025-26.

The Chief Minister noted that the state has not yet received any funds from the central government out of the Rs. 9042 crore allocated under the Post-Disaster Needs Assessment (PDNA). Additionally, approximately Rs. 9200 crore in National Pension System (NPS) contributions have not been received from the Pension Fund Regulatory and Development Authority (PFRDA), despite repeated requests to the central government. The cessation of GST compensation after June 2022 has resulted in an annual revenue shortfall of Rs. 2500-3000 crore. The reinstatement of the Old Pension Scheme (OPS) has also led to a reduction in state borrowing by approximately Rs. 2000 crore.

To address these challenges, the Chief Minister announced a temporary delay in the salaries and allowances of all ministers and chief parliamentary secretaries for two months. He also called upon all members of the assembly to voluntarily defer their salaries and allowances. The Chief Minister emphasized that efforts to increase state revenue and reduce unproductive expenditures are underway, but their benefits will take time to materialize.