Mileage allowance increased to Rs 25/km; daily allowance now Rs 2,500
S Gopal Puri
Shimla:
Even as Himachal Pradesh battles severe financial stress and a mounting debt burden, the state government has approved a notable increase in travel and daily allowances for its ministers. The revision comes at a time when the Treasury is struggling to manage routine expenditure and the state’s loan liability continues to rise year after year.
According to a fresh notification issued by the Himachal Pradesh General Administration Department, the mileage allowance for ministers travelling by road or other approved routes has been raised from Rs 18 to Rs 25 per km. Officials say the revision has been made under the Himachal Pradesh Ministers’ Salaries and Allowances Act, 2000, citing the growing cost of travel.
Decision raises eyebrows amid high liabilities
The daily allowance for ministers on official tours has also been enhanced from Rs 1,800 to Rs 2,500. The government claims the new rates are meant to reflect actual expenses incurred during field visits in both hill and plain regions.
However, the timing of the hike has drawn attention because Himachal Pradesh is currently grappling with a heavy debt load of around Rs 1 lakh crore and frequent borrowing requirements to meet salary, pension and routine administrative expenses.
Himachal Pradesh’s financial health matter of concern
The state’s financial health has been a matter of concern for months, with reports indicating that loan repayments and interest obligations are consuming a large share of revenue.
Despite this strained financial situation, the Cabinet has moved ahead with the revision, which will now be known as the Himachal Pradesh Ministers’ Travel Allowance (Amendment) Rules, 2025.
Critics argue that increasing allowances of ministers during a period of acute financial pressure sends a contradictory message, especially when the government is simultaneously appealing for financial support from the Centre and contemplating cost-cutting measures across departments.
