Himachal govt issues order on salary deferment for CM, ministers
While presenting the budget for 2026-27, the CM had announced the cut in salary in view of the grim financial health of the state
The state government on Saturday issued the notification for paving the way for the deferment in salary announced by Chief Minister Sukhvinder Singh Sukhu while presenting the budget for the financial year 2026-27.
The notification regarding the salary cut announcement was issued by Chief Secretary Sanjay Gupta, here today. The notification is regarding the implementation of the chief minister’s budget announcement of 50 per cent cut in his own salary, 30 per cent in the salary of deputy chief minister, council of ministers, Speaker, Deputy Speaker and 20 per cent in salary of legislators.
The notification for the deferment of salaries is yet to be issued.
It is while presenting the budget for 2026-27 on March 21 that CM Sukhu had announced the cut in salary in view of the grim financial health of the state. While announcing the cut, he had specifically mentioned that it is following the discontinuation of Revenue Deficit Grant (RDG) by the Centre that the state is facing financial crisis as it will be poorer by at least Rs 8,000 crore annually. He had said that with the recommendation of the 16th Finance Commission to stop grant of RDG to 17 states, including Himachal, the state will have to take harsh steps and cost cutting.
“The payable and deferred components of the salary will be reflected in the e-salary system and salary slips to ensure transparency,” the order says. “Statutory deductions, including income tax shall continue to be regulated as per the applicable rules on full amount only to avoid future accounting issues. Deferment amount will be calculated on the salary net of tax paid and other fixed deductions,” the order said.
Also, the deferred portion of the salary will not be treated as a deduction and will be released at a later date as may be decided by the government, based on the financial position. This measure is temporary in nature and is being undertaken as a collective effort to manage financial resources efficiently, he said.
