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This is an archive article published on March 25, 2008

Himachal to shoulder an extra burden of Rs 1,000 cr

The recommendations of the Sixth Pay Commission have definitely brought cheer to government servants here.

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The recommendations of the Sixth Pay Commission have definitely brought cheer to government servants here. However, preliminary reports have suggested that arrears and hike in salaries may cost the state exchequer an additional Rs 1,000 crore. In its recent report, the CAG has said that Himachal Pradesh is the most debt-ridden state. Himachal, reeling under a debt of Rs 22,930 crore, may find this year particularly difficult.

Chief Secretary Ravi Dhingra and Finance Secretary Arvind Mehta have met Chief Minister Prem Kumar Dhumal to brief him about the implications of the Pay Commission’s recommendations. “We have made a provision of Rs 300 crore in the Budget, despite all financial constraints. At present, the Government has been called upon to arrange an additional Rs 1,000 crore to pay arrears and other dues,” said Dhingra. He, however, has pinned hopes on the Centre to bail out the state.

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