Shimla, September 4 , Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has defended the state government’s decision to delay salary and pension payments by a few days each month. In a speech to the Legislative Assembly, Sukhu presented the measure as a strategic move to save approximately Rs 36 crore annually and improve fiscal management.
The Chief Minister explained that the adjustment, which shifts salary payments to the 5th and pension payments to the 10th of each month, aligns with the timing of central government financial remittances. The state receives Rs 520 crore in Revenue Deficit Grant (RDG) and Rs 740 crore in central tax shares on the 6th and 10th, respectively. By deferring payments, the government can avoid the need to borrow additional funds.
Sukhu highlighted that paying salaries and pensions on the 1st of the month would require borrowing Rs 40 crore at a 7.5% interest rate, resulting in an additional annual interest cost of Rs 36 crore. The revised payment schedule is aimed at mitigating this financial burden and enhancing overall fiscal health.
The Chief Minister assured that this decision is not indicative of a financial crisis but rather a proactive step towards better financial management. He also confirmed that autonomous bodies such as the Himachal Road Transport Corporation (HRTC) and the State Electricity Board would continue their usual payment schedules, unaffected by the change.
Sukhu’s remarks underscored the government’s commitment to fiscal prudence and long-term financial stability. By aligning payments with the timing of central remittances, the state aims to reduce dependency on borrowed funds and ensure efficient financial operations.
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