CHANDIGARH: With the State Budget to be tabled on March 21, the cash-strapped Congress-led Himachal Pradesh government withdrew the Cabinet-rank status for all principal advisors and political advisers to the Chief Minister, as well as Chairmen and Vice Chairmen of Boards, Corporations and commissions with immediate effect.
The move comes in a bid to reduce expenditure.
The government also decided to defer 20 per cent of their salaries and monthly emoluments till September 30.
Sources said that this decision has been made in view of the prevailing financial situation of the state, which is grappling with a debt burden exceeding Rs 1.40 lakh crore and also follows the discontinuation of the revenue deficit grant (RDG), which has left the hill state staring at an annual revenue loss of approximately Rs 10,000 crore.
The move is being seen as part of a broader strategy to rationalise non-essential expenditure and improve fiscal discipline.
As per the notification issued by Kulvinder Singh, Joint Secretary of the General Administration Department, the cabinet rank status given to chairmen, vice-chairmen, deputy chairmen of boards and corporations, and principal and political advisers has been withdrawn forthwith as part of efforts to streamline administrative protocol and reduce expenditure.
It further stated that all perks associated with cabinet status, including official vehicles with police protocols, have been cancelled.
These measures would remain in effect until September 30, 2026. Sources further added that on average, the perks, HRA, and hospitality allowances for a single cabinet-rank appointee cost the state exchequer between Rs 2.5 lakh and Rs 3 lakh a month.
Around 50 officials, including six high-profile advisers, are affected by the order.
The chief secretary has directed all administrative secretaries to ensure the instructions are implemented immediately.
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said, "To begin with, we have withdrawn the cabinet rank given to a few people, but in the near future, more such reforms will be taken, considering the financial health of the State. The Rs 10,000 crore annual Revenue Deficit Grant (RDG) for the State has been discontinued, thus there is a need to push for financial reforms as we want to make Himachal self-reliant.”
He said preparation for the Budget for 2026-27 is underway, and several other steps aimed at pushing in reforms are also being contemplated.
Sources pointed out that by stripping these political appointees of their status, CM Sukhu is attempting to demonstrate fiscal discipline to the Union Government and signal to the public that the political class is sharing the financial burden.