TNR News Network
Dharamshala
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Tuesday said the state government’s decision to withdraw cabinet rank from chairpersons, vice-chairpersons and advisors has been taken primarily due to the financial setback caused by the discontinuation of the Revenue Deficit Grant (RDG).
Addressing the media, the Chief Minister said the closure of RDG has resulted in a financial gap of nearly ₹8,000–10,000 crore for Himachal Pradesh, forcing the government to initiate a series of fiscal reforms and expenditure control measures.
Sukhu explained that the Revenue Deficit Grant had been an important financial support for the hill state, but with its discontinuation the government now has to restructure spending and strengthen internal revenue sources. He said Himachal Pradesh will not receive such grants for the next five years, and therefore the state administration must prepare itself to function without that support.
“In view of the loss of RDG, we have begun several reforms so that the state can gradually become financially self-reliant,” the Chief Minister said, adding that the withdrawal of cabinet rank from chairpersons and advisors is one of the steps aimed at reducing non-essential expenditure and improving fiscal discipline.
He, however, clarified that no cuts will be made in critical sectors such as education, healthcare and public security, as these areas directly impact public welfare and the government remains committed to protecting them.
The Chief Minister further said that the current cost-cutting measures have been introduced for an initial period of six months, after which the government will review the financial situation and decide whether additional steps are needed.
Sukhu also informed that the government is currently preparing the upcoming state budget and gearing up for the next session of the Himachal Pradesh Legislative Assembly, where further decisions aimed at reforms and fiscal consolidation could be taken.
He said the budget exercise is focused on identifying areas where spending can be rationalised and revenue strengthened so that Himachal Pradesh can move towards long-term financial sustainability.
“At the same time, the government will ensure that the poor receive maximum relief and support, while people who are financially capable may have to contribute more,” Sukhu said.
The Chief Minister reiterated that the recent decision regarding cabinet rank should be seen as part of a broader reform strategy triggered by the loss of RDG and the need to stabilise the state’s finances in the coming years.
