Shimla, Oct 11(PTI) The Himachal Pradesh government will release state employees' salaries and pension, as well as the pending DA calculated at 4 per cent, on October 28, Chief Minister Sukhvinder Sukhu said on Friday.
The government will pay employees their Dearness Allowance pending since January 1, 2023, and also clear their medical reimbursement bills, he said.
"Salaries and pensions for October would be given on October 28 because of Diwali," Sukhu said.
He said the salaries were earlier delayed to bring some financial discipline.
The Revenue Deficit Grant and tax share from the Centre are received on September 6 and 10 and paying salary on the first day of every month necessitates borrowing from the market at 7.5 per cent interest, Sukhu had earlier said.
The state's decision to defer salaries help it save about Rs 3 crore every month and Rs 36 crore annually on interest payment, he said.
He said that about 1.15 lakh employees have opted for the Old Pension Scheme, while 1,364 have opted for the New Pension Scheme. It has been decided that DA would also be given to these employees who opted for NPS, he said.
Sukhu alleged that freebies amounting to Rs 5,000 crore given by the previous BJP government ruined the financial health of the state.
He listed free power up to 125 units, free water in rural areas, a reduction in VAT on diesel and petrol, and the opening of about 900 health education and other government institutions ahead of the last state election as some of the previous dispensation's decision which proved to be bad for the state.
Sukhu said the free power scheme has not been withdrawn and metred water charges in rural areas are being levied on big hotels, homestays and other commercial establishments.
"We are here to change the system and will make Himachal Pradesh self-reliant by 2027," he said.