Fiscal prudence: Himachal to pay salaries on 5th, pensions on 10th of every month

Chief Minister Sukhvinder Singh Sukhu on Wednesday said the salaries and pensions of employees and retirees of various departments in the state will now be disbursed on the fifth and 10th of every month, respectively, till fiscal prudence measures are in force considering the grave financial crisis in the state.

Replying to the issue of delayed salaries raised by Leader of Opposition Jai Ram Thakur in the Vidhan Sabha, the CM said the employees would get salaries on September 5 and retirees their pensions on September 10.

He clarified that the staggered payment of salaries would not apply to employees and pensioners of boards and corporations as they met this expenditure through their own resources.

“However, we will take into account the pleas of employees on the payment of EMIs on loans raised by them being paid on time,” he added.

Sukhu said that by deferring the payment of salaries and pensions, the government would save Rs 3 crore monthly and Rs 36 crore annually being paid as interest on loans.

“As part of fiscal prudence, effort is being made for mapping of expenditure with revenue to save money being paid as interest on loans. We spend Rs 1,200 crore monthly on salaries and Rs 800 crore on pensions, so we need Rs 2,000 crore every month for this,” he said.

Sukhu said the reason for delay in payment of salaries and pensions is that the government wants to save the interest amount that has to be paid on the loans raised every month to pay salaries and pensions. “We have to pay salaries and pensions on first of each month while the Rs 520 crore revenue deficit grant (RDG) is received on sixth of every month. We have to raise loans at 7.5 per cent interest rate to pay salaries on the first of every month,” he said.

“Today, people who took anti-employees decisions are posing to be pro-employees. The state will be self-reliant in 2027,” said Sukhu in an oblique reference to the previous BJP government.

“When we came to power on December 11, 2022, there was a financial crisis. Our government is working towards making HP self-reliant by taking every section of society into confidence by citing the challenges,” he said. “We are trying to change the system and are moving towards financial discipline,” the CM said.

“What were the reasons that in 2021 despite there being revenue surplus, Rs 10,000 crore DA and arrears were deferred by the BJP regime,” he said. “A liability of Rs 2,200 crore was left by your government which believed in giving freebies by providing free water and opened 600 institutions. We are moving towards fiscal discipline to improve the financial health of the state,” he said.

Raising a Point of Order, LoP Jai Ram Thakur said the serving and retired employees had not got their salaries which is an urgent issue that the house must debate. “The CM keeps changing his stance every day, so the state wants to know the real position with regard to its finances. The house must debate the issue so that the government gives a clarification and employees know as to when exactly they will get their salaries,” said Thakur, adding that his government cannot be blamed for the financial crisis. “If we are discussing the issue, we need to go back to 1993 when the trend of raising loans was started,” he said.