Himachal Pradesh's Festive Financial Strategy: Salaries Ahead of Diwali

Himachal Pradesh will pay state employees' October salaries and pensions ahead of Diwali, including overdue dearness allowance. This decision impacts 3.50 lakh employees and pensioners. The state's strategy aims for financial discipline while grappling with challenges from previous financial policies.

In a strategic move to bolster employee morale ahead of Diwali, the Himachal Pradesh government announced plans to release state employees' salaries and pensions on October 28. This includes a 4% dearness allowance pending since the beginning of the year, benefiting approximately 3.50 lakh employees and pensioners.

However, this decision imposes an additional financial burden of Rs 600 crore annually on the state's budget. The administration has been striving to maintain financial discipline by deferring salaries, which has saved approximately Rs 36 crore in annual interest expenses.

Despite these savings, the administration must tackle the economic challenges left by previous government policies. By 2027, the current government aims to lead Himachal Pradesh to self-reliance, with a focus on systematic change in financial management.

(With inputs from agencies.)