Himachal's economy will stabilise in six months after which arrears, DA will be disbursed: CM

Shimla: Himachal Pradesh's economy will stabilise in six months after which additional arrears and dearness allowances would be disbursed, Chief Minister Sukhvinder Singh Sukhu has said.

"I will not allow the government treasury to be misused for political gains and emphasised that subsidies on electricity and water would be rationalised to ensure that only the needy gets desirable benefits," Sukhu said at an event in Solan on Tuesday.

He was in Solan to unveil the new logo of the Jogindra Cooperative Bank to mark its 100 years.

Giving insights into the state's financial management, CM Sukhu said that out of every Rs 100 spent by the present government in this fiscal year, Rs 25 is allocated to salaries, Rs 17 to pensions, Rs 11 to interest payments, Rs 9 to debt repayment, Rs 10 to grants for autonomous institutions and the remaining Rs 28 to capital expenditures and other activities.

He said the state has witnessed a reduction in the revenue deficit grant, which has decreased from Rs 10,000 crore in 2021-22 to Rs 3,000 crore by 2025-26.

Despite inheriting financial debt of Rs 75,000 crore and outstanding liabilities of Rs 10,000 crore from the previous BJP government, the present Congress government provided a seven per cent dearness allowance (DA) to employees and plans to pay arrears to 28,000 pensioners over the age of 75 this year, the chief minister said.

Sukhu reassured that it would take about six more months to stabilise the state's economy, after which additional arrears and dearness allowances would be disbursed.

He also announced the establishment of Center of Excellence in Kandaghat, Solan, to provide higher education to 9,000 disabled children in the state.

Moreover, a state-level Adarsh De-addiction and Rehabilitation Center would also be set up in Kotla Barog, Sirmaur, to assist those struggling with drug addiction in rejoining mainstream society, Sukhu said.