Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Wednesday said deferring salary payments will help save about ₹3 crore every month and ₹36 crore annually on interest payments as the employees object to the non-payment of salaries on September 1. The chief minister assured that the salary will be given on September 5 and the pension on September 10.
The main reason for non-payment of salary and pension on the due date is that the government is mapping expenditure and receipts for utilisation of resources in a prudent manner, according to a report by PTI citing the chief minister.
He said that the Revenue Deficit Grant (RDG) of ₹520 crore will be received on September 6 and the share in central taxes of ₹740 crore on September 10.
“Paying salary on first day of every month necessitates borrowing from the market at 7.5 per cent interest and deferring payment of salary will help save about ₹3 crore every month and ₹36 crore annually on interest payment,” the report said, quoting Sukhu.
However, corporations and boards will be free to take their decisions according to resources. The CM also added that the government can raise loans of up to ₹2,317 crore only, which has to be utilised judiciously during the next four months.
The monthly expenditure on salary and pension payments is ₹1,200 crore and ₹800 crore, respectively, and hence, ₹2,000 crore is required every month. He claimed the financial crisis existed since the present government took charge on December 11, 2022.
The government is still facing this challenge and is aiming to make the state self-reliant by making changes in the system and bringing financial discipline, he said.
Sukhu also blamed the previous government for not clearing employees’ dues and questioned the deferred payment of ₹10,000 crore of Dearness allowance and arrears in spite of a revenue surplus in 2021.
The previous BJP government left liabilities amounting to ₹2,200 crore with the State Electricity Board by announcing 125 units of free electricity and water supply in rural areas before the polls. Additionally, the BJP government opened 600 institutions without a provision in the budget, the report said quoting the CM.
The opposition rejected the CM’s claims saying that the BJP government should not be blamed for the financial instability as the practice of raising loans dates back to 1993.