HP strips chairmen, vice-chairmen of Cabinet rank

Shimla: Hit hard by the fiscal crisis and escalating debt burden, the Himachal Pradesh government has stripped all chairmen and vice-chairmen of the boards and corporations, as well as principal advisors to the chief minister, of Cabinet rank and implemented a 20 percent deferral for the next six months.

The move, which comes ahead of Chief Minister Sukhwinder Singh Sukhu presenting the state’s Budget for 2026-27 in the Assembly on March 21, indicates a grim financial situation and also sends a message about some hard decisions in the upcoming budget.

In a notification issued on Tuesday, the General Administration Department of the government asked all administrative secretaries to take necessary action to implement the orders.

The notification states: “the ‘Cabinet rank’ status given to several appointees—including chairmen, vice-chairmen, deputy chairmen of boards and corporations, and principal and political advisers—has been taken away immediately to help simplify administrative procedures and cut costs.”

Chief Minister’s principal media advisor Naresh Chauhan, who also held the Cabinet rank, said the decision taken by the Chief Minister was in the larger interest of the state and aimed to send a strong message in the state about the government’s intentions to cut down administrative expenditures in view of the financial crunch faced after the 16th finance commission stopped the Revenue Deficit Grant for the state.

The Chief Minister said that, in the manner in which the about Rs 10,000 crore annual Revenue Deficit Grant (RDG) for Himachal has been discontinued by the centre, there is a need to push reforms. “We want to make Himachal self-reliant,” said Sukhu.

The CM hinted that this era was just the beginning, and in the near future, more such reforms will be seen. “To begin with, we have withdrawn the cabinet rank given to these people, but in the near future, more such reforms will be taken, considering the financial health of the state,” he said.

Sukhu said the preparation for the Budget for 2026-27 is underway, and several other steps aimed at pushing in reforms are also being contemplated, he added.

The Assembly’s Budget session will resume on Wednesday with debate on the governor’s address, which will be followed by the budget presentation on Saturday.