Shimla: The financial strain in Himachal Pradesh has come into sharp focus, with the state government announcing sweeping salary deferments across political leadership and top bureaucracy, alongside a reduced annual budget.
While presenting the Himachal Pradesh Budget 2026-27 in the Vidhan Sabha, Chief Minister Sukhvinder Singh Sukhu said the decision was taken in view of the grim fiscal health of the state. The salary deferment will remain in effect for six months and cover a wide spectrum of officials and public representatives.
Under the announcement, the Chief Minister will defer 50 per cent of his salary, while 30 per cent of the salaries of the Deputy Chief Minister and Cabinet ministers will be deferred. MLAs will see a 20 per cent deferment. The move also includes 20 per cent deferment for Corporation and Board Chairpersons, Vice-Chairpersons, and Advisors.
The austerity measures extend to the top bureaucracy as well. A 30 per cent deferment has been announced for the Chief Secretary, Additional Chief Secretaries, and Principal Secretaries, while Secretaries and Heads of Departments (HoDs) will face a 20 per cent cut.
In the police department, 30 per cent of the salaries of the Director General of Police (DGP) and Additional DGPs will be deferred, while officers from IG and DIG ranks down to SSP and SP levels will see a 20 per cent deferment. In the Forest Department, 30 per cent deferment will apply to senior-most officers, including the Head of Department and Principal Chief Conservators of Forests (PCCFs), while officers from CCF and CF down to DFO levels will face a 20 per cent cut.
The Chief Minister also urged the High Court and district judiciary to consider a voluntary salary deferment of 20–30 per cent, reflecting the scale of the financial stress. He assured that the deferred salaries would be restored once the state’s financial position improves.
The announcement comes at a time when the state’s budget has contracted. The government presented a ₹54,928-crore budget for 2026-27, nearly ₹4,000 crore less than last year’s ₹58,514 crore, highlighting tightening fiscal conditions.
Sukhu admitted that the discontinuation of the Revenue Deficit Grant (RDG) has significantly impacted Himachal Pradesh. He said the withdrawal of RDG would result in an annual loss of ₹8,105 crore, putting additional pressure on the state’s finances and limiting its ability to sustain welfare schemes and development works.
With limited internal revenue sources and continued dependence on central assistance, Himachal Pradesh is facing one of its toughest financial phases. The reduction in budget size and the decision to defer salaries across the system underline the seriousness of the situation as the government looks to manage expenditure and stabilise its finances.
