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Sukhu targets fiscal recovery to clear Himachal pension backlog

Conflict: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu is grappling with a severe fiscal deficit inherited from his predecessors while attempting to settle outstanding pension and salary arrears. Despite depleted state coffers, he insists the government is prioritizing payments to retirees and long-serving employees by curbing systemic corruption.

Sukhu targets fiscal recovery to clear Himachal pension backlog

The administration has already settled full arrears for pensioners over the age of 67 and retired Class-IV staff. Sukhu noted that his government has disbursed 55 to 57 percent of the arrears owed to Class-III employees for the period spanning January 2016 to March 2022. Additionally, Class-I and Class-II officers have received 15 percent of their due payments.

Sukhu blamed the previous BJP administration for leaving the state in a precarious financial state. He argued that if the Revenue Deficit Grant had been maintained at previous levels of 47,000 crore rupees instead of the current 17,000 crore, the state could have cleared an additional 10,000 crore in liabilities. Addressing the workforce, the Chief Minister maintained that while he recognizes the rights of state employees, the current revenue stagnation necessitates a gradual payment schedule. He vowed to continue these disbursements as fiscal conditions stabilize, emphasizing a push toward long-term self-reliance through the modernization of schools and hospitals.

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