CM Sukhu signals more tough measures amid cash crunch

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The North News

Shimla, March 17

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has defended his government’s decision to withdraw cabinet rank from political appointees in boards, corporations and commissions, saying more “tough decisions” could follow as the state grapples with a financial crisis. The move, announced by the government on Tuesday, revokes cabinet rank with immediate effect for chairpersons, vice-chairpersons and other appointees in state boards, corporations and commissions. Their salaries and allowances will also continue to face a 20 percent deferment until 30 September 2026.

Sukhu said the decision was necessary as the state was under severe financial strain and had suffered a major loss after the discontinuation of the Revenue Deficit Grant.

He said Himachal Pradesh had lost around Rs 8,000 crore annually because of the end of the grant, forcing the government to review expenditure and take corrective steps. The Chief Minister said the government was discussing the state budget and made it clear that spending on education, healthcare and social security would not be cut despite the fiscal pressure.

He also indicated that the upcoming budget could include some new taxes targeting the state’s “capable sections”, suggesting that the burden of revenue generation may shift towards those better placed to pay.

Chief Minister Sukhu said the opposition’s role had been reduced to “mere criticism” and insisted that his government would continue taking difficult decisions in the public interest. Speaking at a one-day principals’ conference on reforms in higher education, the chief minister said education remained a top priority and that the government was pushing ahead with structural reforms despite the economic challenges.

He said a science college was being established in Hamirpur, for which Rs 20 crore had been released, and added that more specialised colleges, including commerce and fine arts institutions, would be set up across the state.

Sukhu said recruitment was under way for 400 assistant professor posts and 400 junior assistant professor posts, while colleges would also introduce new-age courses and additional language programmes to improve student employability. He said the government had also restructured the education department by creating separate directorates for school and higher education, and claimed that the introduction of CBSE schools in the state had led to a visible rise in student enrolment.

On healthcare, the chief minister said reforms were also being carried out in the sector, citing the installation of MRI machines in medical colleges and what he described as an encouraging response to robotic surgery. He also reiterated that the state had been denied Rs 1,600 crore in financial assistance because of the restoration of the Old Pension Scheme, but said the decision had been taken as a matter of social security rather than politics.

During the event, the chief minister launched the internal ranking of government colleges, with Government College Hamirpur topping the overall list, followed by Government College Sanjauli and Rajkiya Kanya Mahavidyalaya, Shimla.