Congress-Led Himachal Govt Reels Under Financial Crisis Due To Rising Debts As Employees Await Salaries

The Sukhvinder Singh Sukhu-led Congress government in Himachal Pradesh has no budget to pay salaries for 2.15 lakh employees and 90,000 retired employees.

File Photo of Himachal Pradesh CM Sukhvinder Singh Sukhu.

The Congress government in Himachal Pradesh has been reeling under the worst financial crisis following the increase in debt liabilities and the lack of funds to pay salaries to employees. The state's expenses have shot up reportedly due to the restoration of the old pension scheme, freebies, and subsidies given to commercial establishments.

The Sukhvinder Singh Sukhu-led government in the hill state has no budget to pay salaries for 2.15 lakh employees and 90,000 retired employees. The debt liabilities in the hill state have increased to Rs 76,651 crore in 2023. 

On Tuesday, employee leaders said that this was the first time in the history of the state that the salaries have not been paid. The leaders blamed the state government for acquiring luxuries for ministers and political appointees.

The officials, however, believe that the hill state is awaiting a Rs 520 crore revenue deficit grant from the Bharatiya Janata Party (BJP)-led government at the Centre. The grant is likely to come by September 6, Friday and that amount will be utilised to disburse salaries.

The state has been heavily relying on borrowings through market loans with an estimated debt of Rs 86,589 crore. It has committed liabilities of over Rs 10,000 crore pertaining to arrears of employees and pensioners, to the wall.

In a meeting in Shimla, the Himachal Pradesh Employees Federation has declared that if the demands of the secretariat employees are ignored by the government, it will have to face the consequences.

Speaking on the issue of non-payment of salaries, Federation leader Hira Lal Verma said there is a need for the government to consider the demands of the employees. Also, he asserted that there should be a dialogue between the government and employees as they are fighting for their rights.

Govt Facing Many Challenges Due To Financial Mismanagement: Sukhu 
In a written reply to the Himachal Pradesh Assembly, Chief Minister Sukhvinder Sukhu, said that the state has borrowed Rs 21,366 crore in the past three fiscal years. He also holds the Finance portfolio. 

During his Budget speech, the Himachal Pradesh CM admitted to the grim financial condition with a major portion of money going towards repayment of loans and salaries of the employees. He blamed the previous Jairam Thakur-led BJP government in the state for the financial mess.

“Our government is facing many challenges due to financial mismanagement and wasteful expenditure sprees practised by the previous government. Due to wrong policies in the past, total liabilities in the form of loans have risen to Rs 87,788 crore. The total debt liabilities have increased from Rs 47,906 crore in 2018 to Rs 76,651 crore in 2023,” Sukhu said. 

“The previous government implemented the Sixth Pay Commission recommendations for Himachal government employees at the end of its tenure, which could have been implemented earlier. Due to this delay, the arrears on account of the revised salaries of the employees kept increasing and their liabilities were handed over to our government. But the present government did not allow the pace of development to slow down due to lack of resources,” he further stated.

Sukhu pinned his hopes on Central indulgence and said that the state government has sent a proposal of Rs 9,906 crore to the Centre as a relief for the loss caused by the natural disaster in 2023 based on Post-Disaster Needs Assessment (PDNA). 

BJP Attacks Himachal Govt

The opposition BJP has accused the Chief Minister of coming to power on the basis of false promises. Leader of Opposition and former Chief Minister Jai Ram Thakur said the government employees have been awaiting their salaries.

“They check every message on their phone thinking their salary has come. They are calling their colleagues and people from other departments are asking whether their salary has come. To date, such a situation has never arisen in the state that employees had to wait for their salary,” he said.

The former Himachal Pradesh CM said that Sukhu says that there is no financial crisis. He also sought clarification from the state government over the salary issue.

“When there is no financial crisis, then why is the salary not coming? The government should clarify the situation... when will the salary of the employees and the pension of the pensioners come? Employees do not have any other means of income, they have to feed their families with their salary only. In such a situation, how will the family survive without a salary?” he asked.

(With Inputs from IANS)