Virbhadra plans to freeze posts, allowances

Out to shed flab and tighten the belt, the cash-strapped Himachal Pradesh government proposes not only to freeze the number of posts of government employees but also their allowances.

The other measures aimed at improving the financial health of the state include orderly recruitment and regularisation of daily wage employees. Fresh recruitments would be limited to the number of vacancies arising due to retirement, death and resignation. Also, no new allowances would be sanctioned for government employees in the near future.

The proposals have been incorporated in a memorandum submitted by the Virbhadra government to the 12th Finance Commission which visited the state last month.

Given the heavy debt burden, which is expected to touch the Rs 14,800 crore-mark by March 31, 2004, the state government is left with little option but to tighten the belt.