Facing what it described as a “serious financial situation”, the Himachal Pradesh government has decided to defer a portion of salaries for several categories of public officials for the next six months.
Chief Minister Sukhvinder Singh Sukhu announced on Saturday that 50% of his salary will be deferred.
The deputy chief minister and cabinet ministers will see a 30% deferment, while MLAs, chairpersons, vice-chairpersons and politically appointed advisors will have 20% of their salaries deferred.
The move will also apply to the senior bureaucracy. A 30% deferment will be implemented for top officials such as the chief secretary, DGP, additional chief secretaries, ADGPs, principal secretaries and senior forest officers.
Secretaries, heads of departments, IGPs, DIGs, SSPs, SPs and other forest officials will face a 20% deferment. Group A and B officers will see a 3% deferment for six months, while Group C and D employees have been exempted.
While noting the constitutional independence of the judiciary, the state government has urged the high court to consider a voluntary six-month deferment. The proposal suggests a 20% deferment for district and additional district judges, 3% for Group A and B judicial officers, and up to 30% for officials at the high court level.
In his fourth budget, CM Sukhu proposed a total outlay of Rs 54,928 crore for the 2025–26 financial year. The figure is Rs 3,568 crore lower than the previous fiscal, largely due to the end of the revenue deficit grant (RDG) and the state’s rising debt burden.
Criticising the Centre for stopping the RDG, CM Sukhu said the move caused an average annual loss of Rs 8,105 crore for the state, resulting in a projected revenue deficit of Rs 6,577 crore in the coming fiscal.
The government has also decided to increase the procurement price of milk. The rate for cow milk will rise from Rs 51 to Rs 61 per litre, while buffalo milk will go up from Rs 61 to Rs 71 per litre.
The minimum support price for turmeric has been raised from Rs 90 to Rs 150 per kg, and ginger has been brought under MSP for the first time at Rs 30 per kg.
Additionally, the government has introduced the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026. The bill proposes an “Orphan and Widow Cess” on petrol and high-speed diesel to raise funds for welfare programmes.
CM Sukhu said, “State govt has been providing financial aid and welfare support to orphans and widows from economically weaker sections. It has been considered necessary to levy a specific cess on petrol and high speed diesel at the point of first sale to ensure a sustainable source of revenue for such welfare measures.”
The proposed cess will have an upper limit of Rs 5 per litre.
