Himachal CM Sukhu Assures Continuation of Old Pension Scheme Amid Financial Challenges
Chief Minister Sukhvinder Singh Sukhu of Himachal Pradesh has made a firm commitment to continue implementing the Old Pension Scheme (OPS) and various other public welfare initiatives, despite facing significant financial pressure following the Centre's withdrawal of the Revenue Deficit Grant (RDG). The announcement comes as a direct response to growing concerns about the state's fiscal stability and the potential impact on government employees and citizens.
Seeking Dialogue with Central Leadership
Sukhu has announced plans to meet with Prime Minister Narendra Modi to formally request the restoration of the RDG, which he described as "indifferent treatment" by the Centre toward the hill state. "Himachal Pradesh, by its geographical and economic nature, is a revenue-deficient state," Sukhu emphasized before departing for Delhi. "I will meet Prime Minister Narendra Modi and seek the restoration of the RDG."
The chief minister portrayed himself as "a warrior ready to fight for the state's legitimate share on every platform" and stated he would "go to any extent for the rights of Himachal Pradesh." His itinerary includes meetings with Congress leadership regarding State Congress Unit formation, followed by discussions with Union Minister and former BJP national president JP Nadda specifically addressing the RDG issue.
Financial Implications and State Response
The withdrawal of the RDG represents a substantial financial blow to Himachal Pradesh, with Principal Finance Secretary Devesh Kumar's recent presentation highlighting the state's inability to continue with subsidies, Social Security Pensions, and adoption of alternative pension schemes as direct consequences of the grant discontinuation. Sukhu warned that "the annual loss of Rs 10,000 crore will severely constrain the budget of a small hilly state like Himachal Pradesh."
Despite these challenges, Sukhu assured that "the state government will never compromise on the interests" of the general public. He acknowledged that "the Finance Department manages technicalities of the state's fiscal health," but stressed that "the government's priority remains the enhancement of resources to propel the state forward."
Allegations Against Previous Administration
Sukhu launched sharp criticism against the former Chief Minister Jai Ram Thakur-led BJP government, accusing it of "gross financial mismanagement" during its tenure from 2018 to 2021. According to Sukhu, the previous administration received substantial financial support including approximately Rs 54,000 crore in RDG and Rs 16,000 crore in GST compensation, but allegedly "misused these funds to favour contractors."
The chief minister specifically cited expenditures of nearly Rs 1,000 crore on constructing buildings that now lie vacant and underutilized. In contrast, Sukhu highlighted his government's fiscal discipline, noting that despite receiving only Rs 17,000 crore in RDG over the past three years, the state has "generated Rs 26,683 crore from its own resources" and plans to implement "further stringent measures to bolster the economy."
Call for Bipartisan Cooperation
Emphasizing that state interests should transcend party politics, Sukhu urged the BJP to support Himachal Pradesh's pursuit of its rights before the Centre rather than "deceiving the public." He dismissed claims by the Leader of Opposition about lacking formal invitations to financial briefings, producing copies of personal letters sent to Jai Ram Thakur and other BJP MLAs.
"They were invited to discuss the financial impact of the RDG discontinuation," Sukhu stated, "but the BJP willfully abstained from the meeting." He called on all stakeholders to "rise above political affiliations to collectively advocate for the welfare of the people of Himachal Pradesh."
The RDG, provided under Article 275(1) of the Constitution to bridge revenue-expenditure gaps, remains critical for Himachal Pradesh's financial planning. Sukhu's assurances about continuing OPS and welfare schemes despite the grant withdrawal aim to alleviate public concerns while his administration navigates these fiscal challenges through resource enhancement and economic discipline.
