Shimla: In a significant announcement during the monsoon session of the Himachal Pradesh Legislative Assembly on Wednesday, Chief Minister Sukhvinder Singh Sukhu confirmed that government employees will receive their salaries on the 5th of this month, while pensioners will be paid on the 10th.
Chief Minister Sukhu explained that this adjustment is part of the government’s strategy to manage the state’s finances more effectively. “The decision to pay salaries on the 5th and pensions on the 10th is aimed at aligning our expenditures with our receipts. This approach will help us avoid unnecessary interest payments on loans,” Sukhu stated during the Assembly session.
The Chief Minister detailed the financial logic behind the move, noting that the state typically receives substantial funds from the Central Government, including Rs 520 crore from the Rural Development Grant (RDG) and Rs 740 crore as its share of central taxes, on the 6th of each month. To meet the original payment schedule on the first, the government has been forced to take advance loans from the market at an interest rate of approximately 7.50 percent.
By adjusting the payment dates, the state government anticipates saving around Rs 3 crore per month in interest costs. “This savings is crucial as we strive to use our financial resources judiciously. The new schedule allows us to minimize the burden of interest payments on loans,” Sukhu added.
The Chief Minister also informed that the state government has only Rs 2,317 crore remaining in permissible loans from the market, which must be carefully managed over the next four months, from September to December. This limitation requires stringent fiscal discipline to ensure that the state’s financial obligations are met without exacerbating its debt burden.
However, the new payment arrangement will not apply to government boards and corporations, which retain the autonomy to make their own financial decisions based on available resources.
Despite the Chief Minister’s detailed explanation, the announcement was met with discontent from opposition members, who expressed their dissatisfaction by walking out of the House while shouting slogans. The Speaker subsequently adjourned the session until after lunch.
