Sukhu economics: In cash-strapped Himachal, Congress CM’s twin response to fiscal strain

Mounting debt, limited revenue streams, and the withdrawal of the Revenue Deficit Grant (RDG) have pushed the Himachal Pradesh government into a tight fiscal corner. Chief Minister Sukhvinder Singh Sukhu appears to be responding to the crisis with a mix of austerity and political signalling — one that reflects both compulsion and calculation. On March 17, a day before the Budget session began, Sukhu withdrew Cabinet rank from most of his political appointees, including advisors, and deferred 20% of their salaries for six months. Advertisement Projected as a cost-cutting measure, the move was widely read in bureaucratic and political circles as a precursor to tougher decisions. Four days later, while presenting the Budget, the CM went further, announcing staggered salary deferments across the administrative and political hierarchy: 3% for Class I and II employees, 30% for top bureaucrats, 20% for MLAs, 30% for ministers, and 50% for himself.