Himachal Pradesh Faces Fiscal Hurdles Over MLA Funds and Salaries

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu highlighted the state's severe financial crisis in the Assembly, delaying the release of the Local Area Development Fund and enhanced salaries for MLAs. Financial constraints stem from reduced central grants and borrowing limits, compelling prudent expenditure cuts to secure salary payments.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu addressed the state Assembly on Monday, revealing that the financial crunch would delay the release of the Local Area Development Fund (LADF) and enhanced salaries for MLAs. The Chief Minister's remarks came during a Point of Order discussion raised by Opposition Leader Jai Ram Thakur.

Sukhu explained that the government is struggling to release the third installment of LADF due to limited resources. He noted the unique financial responsibility of Himachal Pradesh MLAs, who pay income tax and other charges, while expressing hope for central financial assistance to alleviate the delay.

The state's financial strain is exacerbated by a significant reduction in the Revenue Deficit Grant and borrowing limits imposed by the Centre, following the implementation of the Old Pension Scheme. In response, the state has cut non-essential spending to continue fulfilling salary commitments, though concerns remain about future funding prospects.

(With inputs from agencies.)