Shimla — In a bid to curb wasteful expenditure and improve the financial health of the state, the Sukhu government of Himachal Pradesh has announced plans to rationalize the number of officers and employees in various government departments. This decision was taken at the Resource Mobilization Committee meeting, chaired by Deputy Chief Minister Mukesh Agnihotri.
The committee meeting, which focused on increasing income and reducing unnecessary expenses, put forward suggestions for discussion in the upcoming state cabinet meeting. A significant concern highlighted during the meeting was the economic condition of the state, where every citizen bears a debt of more than Rs 1.16 lakh. Himachal Pradesh, following Arunachal Pradesh, is grappling with a severe debt crisis, with loans being taken even to pay interest on existing loans.
Cabinet Sub Committee member and minister Rajesh Dharmani emphasized the urgency of tough decisions to alleviate the state’s financial woes. “A large portion of our budget is directed towards repaying loan instalments and interest. The government structure should resemble a pyramid, but currently, it looks like an inverted pyramid,” Dharmani remarked. He pointed out that from 2006 to 2022, the number of category one gazetted officers has surged by 62 percent. The plan is to reduce the number of officers in this category and focus on increasing field and lower staff.
The meeting also revealed alarming statistics about the state’s debt, which had risen to Rs 86,589 crore by March 31, 2023. Furthermore, employee liabilities amounting to Rs 10 thousand crore remain pending. The reduction in the revenue deficit grant from the Center has exacerbated the situation, with the state receiving Rs 40,624 crore from the 14th Finance Commission, which was reduced to Rs 37,199 crore in the 15th Finance Commission. For the fiscal year 2021-22, the grant was Rs 10,249 crore, and it is projected to decline further to Rs 3,257 crore by 2025-26.
To address these challenges, the state government has established a Resource Mobilization Sub-Committee under the leadership of Deputy Chief Minister Mukesh Agnihotri. The committee includes Agriculture Minister Chandra Kumar, Industry Minister Harshvardhan Chauhan, and Town Planning Minister Rajesh Dharmani. The sub-committee is tasked with formulating strategies to mobilize resources and streamline expenditures.
Among the measures being considered is a reduction in the petrol expenses of government vehicles, which is expected to contribute significantly to cutting costs. By focusing on rationalizing the workforce and reducing operational expenses, the government aims to create a more sustainable financial model.
As Himachal Pradesh braces for these stringent measures, the government hopes that rationalizing the workforce and cutting down on operational costs will pave the way for a more sustainable economic future. The success of these initiatives will be crucial in steering the state away from its current debt crisis and towards a more stable and prosperous economic condition.
