Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu’s decision to “put in abeyance” the September 6 notification withdrawing increased salaries for the state government employees has raised political heat and put a spotlight on the hill state’s finances.The Sukhu-led Congress government’s U-turn came amid strong opposition from the employee unions and the principal Opposition BJP. Slamming the Sukhu government, the BJP said that the notification made Himachal Pradesh the first state in the country where the government reduced its employee salaries.AdvertisementReversing the notification Monday, Sukhu said “the government is committed to safeguarding the interests of its employees and issuing such a notification was not justified”.The notification, aimed at saving about Rs 100 crore for the public exchequer, marked another government bid to tackle the state’s mounting financial crisis.The Comptroller and Auditor General (CAG)’s report for the financial year 2023-24, which was tabled during the Monsoon Session of the state Assembly last month, showed the total debt and liabilities of Himachal Pradesh were Rs 95,633 crore. This exceeds targets set under the Fiscal Responsibility and Budget Management (FRBM) Act, which states that Himachal cannot have a loan limit more than Rs 90,000 crore.AdvertisementHimachal’s Debt-to-Gross State Domestic Product (GSDP) ratio has risen from 39.09% in 2019-20 to 43.98% in 2023-24.The state’s borrowing is on the rise too. While its annual borrowing limit for 2023-24 was Rs 6,342 crore, the state ended up borrowing Rs 9,043 crore.A substantial portion of these borrowings — 74.11% by 2024 — was directed toward repaying existing loans. In contrast, in 2019, only 52.99% of the debt was used for such repayments, pointing toward a “debt trap”.However, the Sukhu government’s several moves in the last few yearsto tackle the state’s financial crisis seemed to have “backfired”.In 2024, the government announced that salaries of the government staff would be credited to them on the 5th of every month and pensions on the 10th, as part of efforts to streamline cash flows. However, under stiff resistance from the employee unions and Opposition leaders, this policy lasted barely a month before it was rolled back.Another notification, which was issued by the additional chief secretary (Jal Shakti) on September 21, 2024, had proposed a sewage charge of Rs 25 per seat per month for establishments using their own water sources but relying on the state’s sewerage network. The clause, framed without consulting stakeholders, sparked immediate public outrage. By the evening of the same day, the government was forced to partially revoke the provision.In the case of the current row, the original proposal to increase government staff salaries, which the September 6 notification sought to roll back, was introduced by the then BJP government in September 2022. It was applicable to around 15,000 employees, across 89 categories, including clerks, assistants, and peons.Following protests from employee associations, Sukhu Monday put in abeyance the notification.Political backlashHitting out at the Sukhu government, senior BJP leader and MP Ravi Shankar Prasad charged that its notification move was reflective of the Congress’s failed “khatakhat (swift) model”.most readAddressing the media Monday, Prasad said: “Is deceiving the public before elections the only way Congress knows? Can the so-called ‘khatakhat model’ solve farmer issues? Can it address youth unemployment? Whether it is Karnataka, Himachal Pradesh, or Telangana, the Congress’s governance record everywhere is abysmal. The truth is that Congress lacks policy, intent, and capability.”BJP MLA and spokesperson Randhir Sharma called the row “an act of immaturity on the part of CM Sukhu and his government”. “What the government did Monday was not a new thing under this regime. CM Sukhu has backtracked a number of times. This shows how immature his decisions are,” he said.However, Naresh Chauhan, principal media adviser to CM Sukhu, said: “Former CM Jairam Thakur increased the pay grade merely three months before the 2022 Assembly elections to benefit (BJP) in the elections. Whatever the reasons, we de-notified that particular notification, but CM Sukhu showed his caring attitude towards the government employees as they met him with their grievances, and on the same day, the government put the notification in abeyance.”