Himachal Pradesh Defers Salaries of Ministers, Bureaucrats, and Judges to Curb Debt

March 22, 2026

Shimla, Himachal Pradesh: The Himachal Pradesh government has announced a major salary deferral plan to enforce financial discipline amid a mounting debt burden exceeding ₹110,000 crore.

Chief Minister Sukhwinder Singh Sukhu stated that salaries of the Chief Minister, ministers, MLAs, bureaucrats, Class-1 and Class-2 employees, and judicial officers will be temporarily deferred for the upcoming financial year, with payments to resume once the state’s finances improve.

Details of Salary Deferrals

• Political Leaders: Chief Minister’s salary deferred by 50%; Deputy Chief Minister and ministers by 30%; MLAs by 20%.
• Bureaucrats: Chief Secretary and Additional Chief Secretary salaries deferred by 30%; secretaries and department heads by 20%.
• Police and Forest Officials: Directors General of Police and ADGs deferred by 30%; IGs, DIGs, SSPs, and SPs by 20%; forest officials at senior and mid-levels deferred by 30% and 20% respectively.
• Other Officers: Officials in boards, corporations, and political appointments deferred by 20%; Class-1 and Class-2 officers deferred by 3% for the next six months.

Judiciary Salaries Partially Deferred

Chief Minister Sukhu announced that district and additional judges’ salaries will be deferred by 20%, Class I and Class II court officials by 3%, and senior-level judges and officials in the High Court may have up to 30% of their salaries deferred.

Class III, Class IV Employees and Pensioners Exempted

The salary deferral plan will not affect Class III and Class IV employees or pensioners, who will continue to receive their full salary and pension. This arrangement will be in effect for six months.

Debt and Fiscal Challenges Driving the Decision

Himachal Pradesh’s finances are under severe strain due to limited revenue sources, rising expenditures, and central government measures:

• The Revenue Deficit Grant (RDG) of ₹10,000 crore has been suspended.
• The borrowing limit was reduced from 5% of GDP to 3%, lowering available loans by around ₹5,500 crore.
• The ₹1,600 crore loan available against the National Pension System (NPS) has been discontinued.
• In the upcoming fiscal year, the state expects ₹10,000 crore in new loans, while repayment of old loans and interest alone will cost ₹14,000 crore.

Chief Minister Sukhu emphasized that the temporary deferrals are necessary to stabilize finances and prevent further escalation of the state’s debt burden.