Tue Dec 03 01:30:20 UTC 2024: ## Himachal Pradesh Faces Financial Crunch, Delay in Salary and Pension Payments Possible

**Shimla, [Date]** – Himachal Pradesh is facing a severe financial crunch, raising concerns about potential delays in salary and pension payments for government employees and retirees. The state government requires Rs 2,000 crore monthly – Rs 1,200 crore for salaries and Rs 800 crore for pensions – and the timing of central tax disbursements is creating a liquidity problem.

While October’s payments, including a 4% DA hike, were facilitated by an early release of Rs 1,479 crore from the central government, the December situation is different. The expected Rs 740 crore central tax share is not anticipated until December 8-9, leaving the state treasury short of funds. This could lead to delays in pension payments, mirroring the situation in September when retirees received their pensions on the 9th. Salaries may be paid by December 5th, but pension payments remain uncertain.

The opposition BJP has sharply criticized the Congress-led state government, alleging financial mismanagement and accusing it of failing to ensure timely salary disbursements. BJP leader Randhir Sharma called the situation “unprecedented.”

However, Chief Minister Sukhvinder Singh Sukhu refuted these claims, emphasizing his government’s commitment to employee welfare. He cited the restoration of the Old Pension Scheme (OPS) and the October double salary/pension payment as evidence of effective financial management. He expressed confidence in the state’s financial health improving by 2027.

The state’s revenue streams, comprising a revenue deficit grant, central taxes, and state revenue, do not arrive simultaneously, further exacerbating the cash flow challenges. The current situation highlights the precarious financial position of Himachal Pradesh and the potential impact on its employees and retirees.

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