Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu delivered a sobering assessment of the state's finances in the legislative assembly on Monday, declaring a serious financial crisis that will delay crucial development funds for lawmakers. The announcement came during the winter session in Dharamshala, where the CM stated the next instalment of the MLA Local Area Development (LAD) Fund would be postponed by at least a month, until January.
A Deepening Fiscal Crunch and Its Causes
Responding to a query from Leader of Opposition Jai Ram Thakur during the zero hour, CM Sukhu outlined the grim reality. He attributed the crisis primarily to a steep decline in the central government's revenue deficit grant. This grant has plummeted from Rs 11,000 crore in the 2017-18 financial year to a mere Rs 3,200 crore at present, creating a staggering gap of Rs 8,000 crore for the hill state.
"I know the MLAs are facing difficulties on account of MLA-LAD funds. But they will have to wait till Jan for the next instalment," Sukhu told the House. He emphasized that this financial shortfall is not just affecting development works but is also impacting the timely disbursement of employees' pensions, salaries, and allowances. The government is now forced to curtail expenditure to manage day-to-day financial needs.
Impact on Development and Government Liabilities
Jai Ram Thakur had raised the issue, highlighting that constituencies were not receiving the MLA-LAD funds even after their release, which was damaging the credibility of MLAs on the ground. The CM assured that he has already met with the Union Finance Minister to seek enhanced central assistance for Himachal Pradesh.
Sukhu also provided details on pending liabilities. He claimed that when the Congress government assumed power, the previous BJP administration left behind dues exceeding Rs 10,000 crore in salary and pension arrears. His government has so far spent Rs 2,155 crore on clearing part of these arrears, with outstanding dues still at Rs 8,555 crore.
The state has cleared 70% of pending pension arrears for pensioners and family pensioners aged over 70 years, with a plan to settle the remaining 30% within the current financial year at an estimated cost of Rs 90 crore. The CM expressed hope for a five-year central financial assistance package starting from 2025-26, which would allow the state to clear all employee and pensioner liabilities in a phased manner.
Other Key Discussions in the Winter Session
The session, which began at 2 PM with a question hour, also addressed other critical issues. Revenue Minister Jagat Singh Negi informed the House that during this year's Manimahesh Yatra, 16,000 pilgrims were stranded and 17 fatalities occurred. The state spent Rs 1.17 crore on rescue operations, with an additional Rs 5.68 crore billed for the use of Indian Air Force helicopters.
Furthermore, two significant bills were introduced. The first seeks to amend the Real Estate (Regulation and Development) Act, 2016, proposing to replace the Chief Justice of the HP High Court with the Chief Secretary as the chairperson of the Real Estate Regulatory Authority Selection Committee. It also mandates a fixed, non-renewable four-year term for the authority's chairperson and members.
A second bill to amend the Himachal Pradesh Government Servants' Recruitment and Conditions of Service Act, 2024, was also tabled. In a separate discussion on the monsoon disaster's impact, BJP MLA Prakash Rana announced he would take a token salary of Re 1 until the state recovers from its financial doldrums. Industries Minister Harshwardhan Chauhan called for a political consensus between the BJP and Congress to formulate stable business policies and attract investment, warning that the state is heading towards a debt trap.
