Deferring payment of salary to Himachal employees will save Rs 3 crore on interest payment: CM

Shimla, Sep 4 (PTI) Amid resentment among employees over non-payment of salary on September 1, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Wednesday said deferring payment of salary will help save about Rs 3 crore every month and Rs 36 crore annually on interest payment.

Sukhu defended late payment of salary and pension while announcing in the state Assembly that salary will be disbursed on September 5 and pension on September 10. The main reason for deferring payment of salary and pension is that the government is mapping expenditure and receipts for utilisation of resources in a prudent manner, he added.

The Revenue Deficit Grant (RDG) of Rs 520 crore will be received on September 6 and the share in Central taxes amounting to Rs 740 crore on September 10, he said.

"Paying salary on first day of every month necessitates borrowing from the market at 7.5 per cent interest and deferring payment of salary will help save about Rs 3 crore every month and Rs 36 crore annually on interest payment," he told the House.

However, this arrangement will not be applicable in corporations and boards, who are free to take decisions, keeping in view their resources, Sukhu said, adding that according to the borrowing limit, the government can raise loan to the tune of Rs 2,317 crore only which has to be utilised judiciously during the next four months.

Replying to a point of order raised by Leader of Opposition Jai Ram Thakur, Sukhu reiterated his resolve to make state financially self-reliant by 2027 and most prosperous state by 2032. He said more tough measures will be taken in future and said Thakur was pretending to be the benefactor of employees.

The monthly expenditure on payment of salary and pension is Rs 1,200 crore and Rs 800 respectively and, therefore, Rs 2,000 crore is required every month while the installments of RDG and share in central taxes are received on 6th and 10th of every month, requiring raising of loans.

He said financial crisis existed when the present government took over on December 11, 2022. The government faced the challenges and is going ahead with its agenda to make the state self-reliant by making change in the system and indulging in financial discipline, he added.

Accusing the previous government of not clearing the dues of employees, Sukhu asked why the government deferred payment of Rs 10,000 crore on account of Dearness allowance (DA) and arrears inspite of revenue surplus in 2021.

The BJP government left liabilities of the State Electricity Board worth Rs 2,200 crore, announced 125 units free electricity and free water supply in rural areas just before the assembly polls and also opened 600 institutions without any budgetary provision, he asserted.

Earlier, raising the point of order, Thakur said non-payment of salary and pension to employees is a very serious matter and the House should discuss the matter so that the situation is clarified by the government and the employees get information on when they will receive their salaries.

Thakur said the previous BJP government cannot be blamed for the financial crisis as the practice of raising loans started in 1993. He said the government has been in power for almost two years now and how long the chief minister will continue to cause him financial management. PTI BPL KSS KSS