Himachal Budget 2026: CM Sukhu Announces Salary Cuts, ₹3,586 Cr Outlay Reduction

CM Sukhvinder Singh Sukhu on Friday announced a six-month deferment of salaries for ministers, MLAs and senior officials, alongside a sharp ₹3,586 crore cut in the state’s overall budget size.

Post Published By: Rohit Goyal

Updated : 21 March 2026, 7:45 PM IST

Himachal CM with Budget

Shimla: Himachal Pradesh CM Sukhvinder Singh Sukhu on Friday announced a six-month deferment of salaries for ministers, MLAs and senior officials, alongside a sharp ₹3,586 crore cut in the state’s overall budget size.

Presenting the 2026–27 budget in the Assembly, the Chief Minister said the total outlay has been reduced from ₹58,514 crore in 2025–26 to ₹54,928 crore, citing “extraordinary financial challenges” after the Centre discontinued the Revenue Deficit Grant (RDG).

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Seeking support from all sections of society, Sukhu emphasised that the government is focused on long-term stability rather than electoral gains. He asserted that the state would move towards self-reliance despite the fiscal strain.

As part of stringent expenditure control measures, Sukhu announced that 50% of his own salary, 30% of ministers’ salaries and 20% of MLAs’ salaries would be deferred for six months. Senior bureaucrats—including the Chief Secretary, Additional Chief Secretaries, Secretaries and DGP-rank officers—will see a 30% deferment, while other officials will face a 20% deferment.

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The move is being seen as a significant step to manage the state’s finances amid tightening resources and reduced central support.