Himachal CM Sukhu to continue OPS, welfare schemes despite RDG cut

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday reaffirmed that the state government will continue the Old Pension Scheme (OPS) and various public welfare initiatives , despite the central government withdrawing the Revenue Deficit Grant (RDG) . Addressing the media, Sukhu said the government would mobilise its own resources to maintain these schemes, ensuring that government employees continue to enjoy the security provided under OPS.

He criticised the previous BJP administration led by Jai Ram Thakur for financial mismanagement between 2018 and 2021, pointing out that during its tenure, the state received Rs 54,000 crore in RDG and Rs 16,000 crore in GST compensation, much of which, he alleged, was misused on favoured contractors and vacant, underutilised buildings . In contrast, the present government has received only Rs 17,000 crore in RDG over three years but has maintained strict fiscal discipline , generating Rs 26,683 crore from its own resources .

Sukhu argued that switching from OPS to the contribution-based Unified Pension Scheme (UPS) , as the BJP would have done, would have undermined the financial security of employees. He described the withdrawal of RDG as “step-motherly treatment” by the Centre, stressing that Himachal’s hilly geography and revenue constraints make it a revenue-deficit state . Sukhu said he plans to meet the Prime Minister to seek restoration of the grant and urged political consensus, calling on the BJP to support the state’s legitimate demands.

However, former CM Prem Kumar Dhumal said fiscal stress is not new and criticised the government for increasing expenditure through appointments, new vehicles, and additional staff . He suggested that curbing non-essential spending should be a priority to uphold financial discipline.

While continuing OPS imposes a substantial long-term financial burden , the state’s leadership appears determined to balance fiscal prudence with political and employee considerations, aiming to maintain welfare programmes and government employee morale amid funding challenges.