Amid a financial crisis, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced that he, along with his cabinet ministers, chief parliamentary secretaries, and board chairmen, would defer their salaries, allowances, and other benefits for the next two months.
GST compensation stopped being given in June 2022. This reduced the income by 2500–3000 crores every year. The borrowing capacity was also reduced by 2000 crores due to the restoration of the Old Pension Scheme (OPS).
"After discussing in the cabinet, all the members of the cabinet decided that until the state sees good improvement in the coming times, we will not take any salary, nor TA, nor DA for 2 months... This is just a small amount, but it is a symbolic amount. Apart from this, I also requested all the MLAs," Sukhu said during a media briefing over financial vows in the state government.
The Chief Minister also urged all MLAs, including those from the Opposition BJP, to voluntarily defer their salaries and allowances for the time being. In the 68-member House, the Congress holds 40 seats, and the BJP holds 28. However, BJP MLAs, led by Leader of the Opposition Jairam Thakur, staged a walkout after alleging a scam in the excise department, which falls under the chief minister's purview.
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The walkout followed Sukhu’s statement that the revenue generated through the 2024-25 excise policy was much higher than the total excise revenue generated during the BJP’s five-year tenure.
A similar crisis is unfolding in another Congress-ruled state, Karnataka, where water and electricity tariffs are being used to fund government guarantees. Deputy CM D.K. Shivakumar previously mentioned that there are no funds available for development.
Himachal Pradesh Minister & Congress leader Vikramaditya Singh said, "The CM has taken a good initiative to overcome the financial troubles we are facing in the state. We are trying to strengthen the resources in the state - be it through water resources or our excise policy and mining policy. We are also trying to legalise cannabis for limited purposes like for medical purposes. We have still not got the Post Disaster Relief Fund from the Centre. The state has received limited funds in NDRF and SDRF."