HP Assembly in session: Inherited Rs 10K-crore liabilities from previous regime: Sukhu

The present government had inherited liabilities of over Rs 10,000 crore from the previous regime, said Chief Minister Sukhvinder Singh Sukhu. “We are passing through an acute financial crisis as these liabilities have created a severe strain on the state,” he said. Sukhu said this while outlining financial steps taken by the state government to address long-pending salary, pension and gratuity arrears of employees and pensioners in response to questions and issues raised by former CM and Leader of Opposition Jai Ram Thakur on Monday.

The Chief Minister said the government had prioritised payments to senior pensioners soon after assuming office. He said pensioners and family pensioners aged 75 years and above had been paid their full arrears. Those aged between 70 and 75 years bracket have received 70 per cent of their dues, while the remaining 30 per cent arrears for this category would be released within the current financial year at a cost of Rs 90 crore.

Pensioners aged 65–70 years have been paid 38 per cent of their arrears, and those below 65 years have received 35 per cent.

The government has also released 20 per cent of gratuity arrears to employees who retired between January 1, 2016, and December 31, 2021. In addition, Class I to Class III employees have been paid Rs 50,000 each as part payment of salary arrears, while Class IV employees received Rs 60,000, followed by an additional instalment of Rs 20,000 issued on October 19, 2024.

The Chief Minister said the state government had so far spent Rs 2,155 crore on clearing arrears of employees and pensioners, while outstanding liabilities still stand at Rs 8,555 crore.

He said nearly 1.17 lakh employees had benefited from the restoration of the Old Pension Scheme (OPS). Besides, Class IV employees had been provided relief by counting one year of qualifying service in lieu of five years of daily wage service for pension eligibility, he said.

The Chief Minister added that the government had taken several economic decisions aimed at strengthening the state’s financial health. As revenue improves, pending arrears of employees and pensioners would be cleared on priority, he said.

“Based on the recommendations of the 16th Finance Commission, the state expects enhanced financial assistance from the Centre over the next five years, after which the government would clear all remaining liabilities in a phased manner,” said Sukhu.