The state government today withdrew the notification regarding deferment of salaries of the Deputy Chief Minister, ministers, Speaker, Deputy Speaker, and MLAs issued on April 18, in view of the grave financial crisis.
Chief Secretary KK Pant issued the notification in this regard today. However, the 50 per cent salary deferment of Chief Minister Sukhvinder Singh Sukhu will continue until further orders. The notification also states that the deferred salary will be paid along with the salary for June 2026.
While presenting the 2026-27 budget on March 21, Chief Minister Sukhvinder Singh Sukhu had announced the salary deferment in the wake of the withdrawal of Revenue Deficit Grant by the Central Government. He had said it was a temporary arrangement until the state’s financial position improved.
As per the April 18 notification, there was a 50 per cent cut in the CM’s salary, 30 per cent in the salaries of the Deputy Chief Minister, Council of Ministers, Speaker, and Deputy Speaker, and 20 per cent in the salaries of legislators. The Chief Minister had said that with the Sixteenth Finance Commission recommending discontinuation of the RDG to 17 states, including Himachal Pradesh, the state would have to take harsh cost-cutting steps.
While announcing the cuts, Sukhu had specifically said the state was facing a financial crisis due to the discontinuation of RDG by the Centre, which would make it poorer by at least Rs 8,000 crore annually.
The Union Ministry of Finance, on the recommendations of the Sixteenth Finance Commission, had discontinued RDG to a total of 17 states, including Himachal Pradesh.