Himachal To Disburse Salaries On 5th, Pensions On 10th Each Month

In response to criticism from the Opposition over delayed payments, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced on Wednesday that government employees and retirees will now receive their salaries and pensions on the 5th and 10th of each month, respectively.

Addressing the state assembly during the seventh day of the monsoon session, CM Sukhu explained that the decision to defer these payments, traditionally disbursed on the first day of the month, is driven by a strategy of fiscal prudence. The state government aims to align its expenditure with incoming financial resources, which is crucial for effective financial management.

“The state government has to pay salaries and pensions on the first day of every month, while the revenue deficit grant (RDG) of ₹520 crore and the share in Central Taxes of ₹740 crore are received on the 6th and 10th of every month, respectively,” Sukhu informed the assembly. “To make these payments on the first day, the state has been forced to take loans at an advance interest rate of 7.5%, which imposes an unnecessary financial burden.”

The CM emphasized that this adjustment is part of the government’s broader approach to fiscal discipline as it navigates through an economic crisis. “Each month, we disburse ₹1,200 crore in salaries and ₹800 crore in pensions, amounting to ₹2,000 crore for government employees and retirees,” Sukhu stated. He added that efforts would continue to be made to disburse salaries on the first day, with a meeting scheduled at the end of the month to revisit the issue.

Sukhu further explained that by deferring the payment dates, the government would save approximately ₹36 crore annually in interest payments. “For a five-day loan period, the interest alone costs ₹3 crore. By aligning salary and pension payments with our revenue inflows, we can avoid this cost,” he noted.

However, the CM clarified that this new payment schedule would not apply to employees and pensioners of boards and corporations, as these entities can make independent decisions based on their financial resources.

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