The Himachal Pradesh government successfully disbursed salaries to its employees, amounting to Rs 1,200 crore, on Monday (December 2). However, approximately 1.75 lakh pensioners are still awaiting their pension payments, which require an additional Rs 800 crore. This delay means pensioners might have to wait until December 9 for their dues to be credited, as was the case in previous months.
The timing of the salary payment this month was affected by December 1 falling on a Sunday, resulting in the release on Monday, December 2. The financial strain on the state exchequer highlights the challenges of meeting monthly obligations for salaries and pensions, which total Rs 2,000 crore.
Depending on multiple revenue streams
The Himachal government depends on multiple revenue streams to meet its financial needs. The state receives approximately Rs 520 crore monthly as a revenue deficit grant from the Union Ministry of Finance. Additionally, around Rs 1,200 crore is generated from state taxes and non-tax revenue, while Rs 740 crore comes as the state’s share in central taxes.
Despite a combined revenue of Rs 2,460 crore, the funds do not arrive simultaneously, creating bottlenecks in disbursing both salaries and pensions promptly. Revenue deficit grants are typically received by the 5th of the month, while the share in central taxes comes around the 10th. This staggered inflow complicates timely payments.
Pensions released before time in October
In September, pension payments were credited on the 9th, and in October, the government made an exception by releasing pensions before Diwali, on October 28. Chief Minister Sukhvinder Singh Sukhu’s administration had touted the October achievement as a milestone, claiming it was the first time a government had managed to disburse salaries twice in a single month.
While government employees enjoy the security of timely salaries, pensioners often bear the brunt of these financial delays. The waiting period creates frustration among retired employees, many of whom rely solely on pensions for their daily expenses.
