Himachal Pradesh Government Cuts Perks: Cabinet Rank Withdrawn, 20% Salary Slash for Political Appointees

In a bold and symbolic move, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has taken a major step toward financial discipline by withdrawing cabinet rank from several political appointees. Along with this, a 20% salary cut has also been imposed with immediate effect.

The decision affects chairmen, vice-chairmen, and advisors across various boards and corporations. According to an official order issued by the General Administration Department, the salary reduction will remain in place until September 30.

💡 A Clear Message of Austerity

While the immediate financial savings may not be very large, the move sends a strong political message — the government is serious about reducing unnecessary expenditure. It signals the beginning of a broader reform strategy aimed at stabilizing the state’s finances.

This comes at a time when Himachal Pradesh is facing increasing financial pressure, especially after the discontinuation of nearly ₹8,000 crore annually under the Revenue Deficit Grant (RDG). The Chief Minister has emphasized the need for the state to move towards financial self-reliance.

⚠️ More Salary Cuts Coming?

Sources suggest that this may just be the first step. The government is reportedly considering extending similar pay cuts to ministers, MLAs, and even top bureaucrats like IAS and IPS officers.

If implemented, this could create pressure on opposition leaders to adopt similar measures, potentially building wider political support for austerity.

🎯 Strategic Political Move

Apart from financial reasons, the decision is also being seen as a strategic response to opposition criticism. There has been growing backlash over political appointees enjoying high perks during a time of economic strain.

By removing cabinet ranks, the government appears to be addressing concerns around privilege and accountability.

📊 Impacted Leaders

Several prominent names are expected to be affected by this decision, including:

• RS Bali – Chairman, HP Tourism Development Corporation
• Sunil Sharma – Political Adviser to CM
• Naresh Chauhan – Media Adviser
• Gokul Butail – IT Adviser
• Nand Lal – Vice-Chairman, State Finance Commission
• Bhawani Pathania – Vice-Chairman, State Planning Board
• Kehar Singh Khachi – Vice-Chairman, HP Forest Corporation

📉 Bigger Reforms Ahead

With the 2026–27 budget preparations underway, the state government is actively exploring structural reforms to reduce non-essential spending and improve financial efficiency.

This step aligns with expectations following the 16th Finance Commission’s recommendations, particularly regarding the discontinuation of RDG support.

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