Himachal Pradesh: Sukhu govt announces big pay hike for CM, ministers and MLAs, even former MLAs, while public bears burden of state debt

Just before Diwali, the Congress government in Himachal Pradesh gave a huge gift, but not to the citizens, but to MLAs. The salaries of the Chief Minister, ministers, and all MLAs have been increased by about 25%. This comes at a time when the state is struggling with a massive financial crisis, and many are asking if this was the right time for such a move.

In March 2025, a bill to increase these salaries was passed and has now been approved by the Governor. With this hike, Chief Minister Sukhwinder Singh Sukhu’s monthly salary will go up from ₹2.65 lakh to ₹3.50 lakh. Similarly, the salaries of cabinet ministers will jump from ₹2.55 lakh to ₹3.10 lakh, and MLAs will now get ₹2.80 lakh instead of ₹2.10 lakh per month. Even former MLAs got a raise, with their monthly pension increasing from ₹93,000 to nearly ₹1.29 lakh.

While the government says this raise, which came after nine years, will ‘encourage leaders to work better,’ the state’s financial health tells a different story. Himachal Pradesh is buried under a debt of over ₹1 lakh crore. The current government has already taken loans worth ₹37,739 crore in just two and a half years, which is more than what the previous BJP government took in its entire five-year term.

This mountain of debt is directly affecting the common people and government employees. Many employees are yet to receive their dearness allowance (DA) that was announced back in May. Development work across the state has come to a pause, with broken roads and pending bridge constructions.

Contractors who have completed government projects are waiting for their payments, with some dues pending for years. The situation got so bad that in July 2025, the High Court even warned the government it might have to declare a financial emergency.

Himachal Roadways is facing a major financial crisis, which has forced it to start shutting down bus routes since April 29, 2025. The corporation is losing a lot of money, especially on routes to Delhi, Punjab, and Haryana. So far, six routes to Delhi and Haridwar have been stopped completely. Now, officials are reviewing all routes to decide which others to combine or close.

This has created a big problem, especially for people in rural areas who depend on these buses. Over the last two years, 88 routes were closed while only 52 new ones were started, making travel even more difficult. Thousands of outsourcing staff working in government hospitals, schools and other institutions have not been paid for months. Many contractors have been awaiting payments too.

In a desperate move to find money, the government even tried to use funds from 35 major temples for its social schemes. However, the High Court stepped in and stopped this, stating that temple donation money belongs to the deity, not the government, and should be used for religious and community purposes only.

So, while the state’s leaders enjoy their big salary hikes this Diwali, the public and government employees are left wondering when their problems will be addressed. This decision has created a picture of two Himachals, one where politicians are celebrating, and another where the people are struggling to make ends meet.