Cash-strapped Himachal Pradesh withdraws board heads' cabinet rank, defers payments

New Delhi: In what is being seen as an austerity measure, the cash-strapped Himachal Pradesh government has withdrawn the Cabinet rank accorded to chairman, vice-chairman and advisors of boards, commissions and corporations and withheld 20% of their monthly emoluments till September.

The General Administration Department of the state in its order on Tuesday said, "...to streamline administrative protocol, the status of Cabinet rank has been reviewed and it has been decided...that the status of 'Cabinet rank' presently accorded to various authorities such as chairman/ vice-chairman/ deputy chairman of various boards/corporations/commissions, principal advisors/political advisors etc is hereby withdrawn... Further, 20% of their salary/monthly emoluments will stay deferred till 20-09-2026." All administrative secretaries have been directed to take prompt action in the matter, the statement added.

The Congress government, which has been facing a financial crunch, has been taking steps towards achieving fiscal prudence. The withdrawal of status is also seen as a move to reduce protocol-related expenditure, including security cover, official vehicles and staff entitlements that typically accompany such ranks. As per sources, the move may seem symbolic but it could also be an indication of some strict measures to be introduced in the budget, which is likely to be presented on March 21. The state debt has climbed up to ₹1.40 lakh crore. The 16th Finance Commission has stopped Revenue Deficit Grants for 2026-31, creating a significant financial hurdle for the state.