Austerity Overhaul: How Himachal’s Cabinet is Leading by Example

In a move that underscores financial prudence, the Himachal Pradesh budget has introduced a temporary salary deferment plan aimed at ensuring the state’s fiscal stability. For the next six months, the Chief Minister will voluntarily defer 50% of his salary, while the Deputy Chief Minister, Cabinet Ministers, and MLAs will see deferments of 30% and 20%, respectively.

This belt-tightening extends beyond the political executive. All Chairpersons, Vice-Chairpersons, Deputy Chairpersons, and political appointees serving as Advisors will also have 20% of their salaries deferred during this period.

The top echelons of the bureaucracy are not exempt. The Chief Secretary, Additional Chief Secretaries, and Principal Secretaries will have 30% of their salaries deferred, while Secretaries and Heads of Departments (HoDs) will see a 20% deferment.

In the police and forest departments, the deferment structure is similarly tiered: the DGP and ADGPs face a 30% deferment, while officers ranging from IGPs down to SPs will have 20% deferred. A parallel structure applies to forest officials, from the Principal Chief Conservator of Forests (PCCF) down to Divisional Forest Officers (DFOs).

Looking at the broader administrative framework, Group-A and Group-B officers will have 3% of their salaries temporarily deferred. Importantly, Group-C and Group-D employees have been kept completely out of this measure, ensuring they continue to receive their full salaries without interruption.

The state government has also directed all Boards, Corporations, Public Sector Undertakings (PSUs), Autonomous Bodies, Universities, and major Societies that receive grants or budgetary support from the state to align with this decision.

In a gesture of institutional respect, the government has reached out to the judiciary. While fully honoring the constitutional dignity and independence of the judiciary, the state has expressed hope that the High Court will consider a similar approach—suggesting a 20% deferment for District and Additional District Judges, and 3% for Group-A and Group-B Judicial Establishment officers. The government has also left the door open for senior judicial officials to consider a voluntary deferment of up to 30%, depending on the High Court’s discretion.

Crucially, the government has emphasized that this is only a temporary measure. As soon as the state’s financial situation improves, the deferred amounts will be fully repaid.