State Government Implements Fiscal Prudence Measures, Aims to Save Rs. 3 Crore Monthly.
SHIMLA: IN a bid to tighten fiscal discipline, the State Government has introduced new measures aimed at saving Rs. 3 crore per month by adjusting the payment schedule for salaries and pensions.
As part of the social and fiscal governance policy, the government has decided to defer salary payments by 5 days and pension payments by 10 days.
According to CM Sukhu, these measures will help alleviate the state’s financial burden, which currently requires Rs. 2,000 crore each month to cover salaries and pensions.
Rs 1200 crore is salary component and Rs 800 crore is pension component.
The state is receiving Rs. 520 crore RDG from Centre on the 6th of every month and an additional Rs. 740 crore in state-shared central taxes on the 10th. However, this still falls short of the required amount, necessitating loans with an interest rate of Rs. 7.50 to cover the deficit.
By implementing the deferment, the state hopes to save Rs. 3 crore every month.
This move is seen as a strategic approach to manage the state's financial resources more efficiently. Chief Minister has emphasized the importance of fiscal prudence and discipline, stressing that these measures are necessary to maintain the financial health of the state.
The Chief Minister has set an example by deferring payments to Ministers, MLAs, by two months, demonstrating a commitment to leading from the front in this initiative.
However, it remains to be seen how these changes will be received by the affected parties and whether the long-term benefits will justify the short-term sacrifices.
The state government’s move is being closely watched as a test of its fiscal management capabilities, with attention on how these changes will impact the overall economic stability and governance.
Himachal has left with a choice to lift Rs 2317 Crore loan for the rest of the year till December.
The effectiveness of these measures will be evaluated based on their ability to maintain financial discipline while ensuring that the essential needs of government employees and pensioners are met.
