State Govt hikes DA by 5% ahead of Diwali

New Delhi: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Friday announced a 5 percent hike in dearness allowance (DA) for state government employees and an additional payment of Rs 10,000 to Class IV employees ahead of Diwali.

Addressing a press conference, Sukhu said the government would issue a notification on Friday, with the revised DA to be disbursed along with the October salary.

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The announcement comes at a time when the state’s financial position remains under scrutiny, with the ruling Congress and Opposition BJP trading accusations over rising debt and fiscal management.

Sukhu disputes BJP’s debt figures

Rejecting Leader of the Opposition Jai Ram Thakur’s claim that Himachal Pradesh’s outstanding debt had reached Rs 1.20 lakh crore, Sukhu maintained that the actual loan liability stood at Rs 99,461 crore as of October 22, 2026.

He accused the previous BJP government of adding substantially to the state’s debt burden despite receiving significant financial assistance from the Centre.

According to Sukhu, the BJP government borrowed Rs 43,261 crore during its five-year tenure, even as the state received approximately Rs 10,000 crore annually in revenue deficit grants, besides GST compensation.

In comparison, he said, the present Congress government had raised loans amounting to Rs 37,781 crore.

Sukhu maintained that all borrowings were undertaken within the limits prescribed by the Central government, with some loans carrying no interest.

Previous government left behind substantial liabilities: CM

The Chief Minister said Himachal Pradesh’s outstanding debt stood at Rs 76,633 crore when the BJP government left office. In addition, the state inherited liabilities of approximately Rs 11,000 crore arising from pending DA arrears and implementation of the Sixth Pay Commission recommendations.

However, the competing claims underline a larger concern over Himachal Pradesh’s fiscal health. Even going by the Chief Minister’s figures, the state’s outstanding debt is approaching Rs 1 lakh crore, raising questions about its capacity to finance employee benefits, development projects and other expenditure without continued borrowing.

The government has not detailed the additional annual financial burden arising from the latest DA increase or how it intends to accommodate the expenditure within its existing budget.

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Government claims progress towards financial self-reliance

Defending his administration’s financial management, Sukhu said the government had taken several measures to strengthen revenue generation and reduce dependence on borrowing.

He cited favourable outcomes in long-pending legal disputes, including the Wild Flower Hall case, and changes to the state’s excise policy as important steps towards improving its finances.

The Chief Minister asserted that these initiatives were helping Himachal Pradesh move towards economic self-reliance.

However, the real test of that claim will be whether the state can sustainably increase its own revenue, contain its debt burden and meet growing expenditure commitments without relying heavily on fresh loans and central assistance.

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