State Government pledges to protect Old Pension Scheme despite Rs 10,000 crore annual loss; accuses BJP of financial mismanagement and political opportunism
In a charged press conference on Tuesday, Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu launched a scathing attack on the Central Government over the withdrawal of the Revenue Deficit Grant (RDG), while simultaneously assuring state employees and citizens that welfare schemes—particularly the Old Pension Scheme—would continue uninterrupted despite the fiscal blow.
The withdrawal of RDG, constitutionally mandated under Article 275(1) to bridge revenue-expenditure gaps in deficit states, has triggered a political storm in the hill state, creating widespread anxiety among government employees and raising questions about the financial viability of a state already grappling with limited revenue generation capacity.
“We Will Not Abandon OPS,” CM Assures Employees
Addressing mounting concerns among the state’s approximately 2.5 lakh government employees, CM Sukhu categorically stated that his administration remains committed to the Old Pension Scheme, positioning it as a matter of social security and dignity. “Had the BJP been in power today, they would have replaced OPS with the Unified Pension Scheme, stripping employees of the guaranteed benefits they currently enjoy,” he charged, framing the issue as one of fundamental rights versus political expediency.
The Chief Minister, who often references his modest family background, emphasized his government’s people-first approach. “I come from a common family. I understand the insecurities and struggles of ordinary citizens. This government will never compromise on their interests, no matter the financial pressure,” he declared.
The Rs 10,000 Crore Question
The annual loss of Rs 10,000 crore due to RDG discontinuation poses a severe challenge for Himachal Pradesh’s fragile economy. CM Sukhu termed the Centre’s decision “step-motherly treatment,” arguing that the state’s mountainous terrain, limited industrial base, and revenue constraints make it inherently revenue-deficit. “For a small hilly state like ours, this is not just a budgetary challenge—it threatens our ability to function,” he warned.
Despite the setback, Sukhu claimed his government has demonstrated superior fiscal discipline compared to its predecessor. Over the past three years, his administration received only Rs 17,000 crore in RDG—significantly less than the Rs 54,000 crore granted to the previous BJP government between 2017 and 2022—yet managed to generate Rs 26,683 crore from internal resources through what he described as “strict economic discipline and innovative revenue mobilization.”
Allegations of BJP-Era Financial Mismanagement
In a direct broadside against his predecessor, Jai Ram Thakur, CM Sukhu accused the previous BJP government of squandering public funds during its 2017-2022 tenure. He alleged that despite receiving Rs 54,000 crore as RDG and an additional Rs 16,000 crore as GST compensation, the previous administration engaged in reckless expenditure favoring contractors and vested interests.
“Nearly Rs 1,000 crore was spent on constructing buildings that now stand vacant and serve no public purpose. Where did the money go? Who benefited?” Sukhu questioned, implying systemic corruption and misplaced priorities under BJP rule.
These allegations have deepened the political divide in the state, with the Congress government seeking to paint the BJP as fiscally irresponsible while projecting itself as a responsible steward of public finances.
BJP Accused of Ducking Responsibility
Countering claims by Leader of the Opposition Jai Ram Thakur that he was not formally invited to discuss the RDG crisis, CM Sukhu produced copies of invitation letters sent to Thakur and other BJP MLAs. “They were personally invited to participate in a briefing on the financial impact of RDG withdrawal. They chose to stay away. This is political opportunism at its worst,” he charged.
The Chief Minister called on the opposition to transcend party politics and join forces in demanding the state’s rightful dues from the Centre. “The interests of Himachal Pradesh must come before party interests. Instead of misleading the public, the BJP should stand with us in Delhi and fight for our state’s rights,” he appealed.
“I Am a Warrior,” Sukhu Declares
Signaling his intent to escalate the matter, CM Sukhu announced plans to meet Prime Minister Narendra Modi to demand restoration of the RDG. “I describe myself as a warrior. I will fight for Himachal’s legitimate share on every platform—in Parliament, in constitutional forums, and in public discourse. This is not a party issue; this is about the survival and dignity of our state,” he asserted.
The Chief Minister’s combative stance reflects the growing unease within Himachal’s political and administrative circles. With the state’s fiscal space shrinking and employee welfare hanging in balance, the RDG withdrawal has emerged as a flashpoint that could reshape the state’s political landscape in the coming months.
As uncertainty looms over the future of welfare schemes and the state’s economic trajectory, all eyes are now on how the Centre responds to what is shaping up to be a major federal friction point between New Delhi and Shimla. Sonnet 4.5
