Chief Minister Sukhvinder Singh Sukhu stated that the Himachal Pradesh government will continue the Old Pension Scheme (OPS) and other welfare schemes, despite the central government's withdrawal of the Revenue Deficit Grant (RDG). He accused the previous BJP administration of financial mismanagement and plans to meet Prime Minister Narendra Modi to seek restoration of the grant.
On Tuesday, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced that the state government will continue the Old Pension Scheme (OPS) and various public welfare initiatives, despite the financial blow from the central government's withdrawal of the Revenue Deficit Grant (RDG).
A presentation by Principal Finance Secretary Devesh Kumar two days earlier highlighted the state's inability to sustain subsidies, social security pensions, or adopt the New Pension Scheme (NPS) or Unified Pension Scheme (UPS) due to the RDG discontinuation. Sukhu termed the RDG withdrawal as an “indifferent treatment” by the Centre. He stated, “Himachal Pradesh, by its geographical and economic nature, is a revenue-deficient state. I will meet Prime Minister Narendra Modi and seek the restoration of the RDG.”
Before boarding a chopper to Delhi from Shimla's Annandale helipad, Sukhu told reporters, “If the BJP were in power, they would have replaced the OPS with the UPS, ending the security currently enjoyed by government employees. Coming from a common family, I have a deep understanding about concerns of the general public. The state government will never compromise on their interests.”
Sukhu is traveling to Delhi for a Congress leadership meeting on forming the State Congress Unit. Afterward, he will meet Union Minister and former BJP national president JP Nadda on the RDG issue and hopes for an appointment with Prime Minister Modi after the ongoing Budget Session. He affirmed, “I will go to any extent for the rights of Himachal Pradesh.”
Accusing the previous BJP government under former Chief Minister Jai Ram Thakur of gross financial mismanagement between 2018 and 2021, Sukhu said it received Rs 54,000 crore in RDG and Rs 16,000 crore in GST compensation over five years but misused the funds to favour contractors. He cited the expenditure of nearly Rs 1,000 crore on construction of vacant and underutilised buildings.
In contrast, the current government received Rs 17,000 crore in RDG over the past three years but generated Rs 26,683 crore from its own resources and plans further stringent measures to bolster the economy. Sukhu urged the BJP to support the state's pursuit of its rights before the Centre, transcending party lines.
The RDG, provided under Article 275(1) of the Constitution to bridge the revenue-expenditure gap, if withdrawn, will cause an annual loss of Rs 10,000 crore to the small hilly state. He dismissed the Leader of Opposition's claim about lacking a formal invitation to a financial briefing and produced copies of personal letters sent to Jai Ram Thakur and other BJP MLAs. Sukhu noted, “They were invited to discuss the financial impact of the RDG discontinuation, but the BJP willfully abstained from the meeting.”
