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Himachal Pradesh government withdraws cabinet rank status, defers salaries amid fiscal tightening

The Congress-led administration, headed by Chief Minister Sukhvinder Singh Sukhu, has been under pressure over the state’s financial position.
March 26, 2026 / 23:32 IST
Removing cabinet rank is expected to reduce protocol-related spending, including expenses tied to security, official vehicles, and staff that typically accompany such designations.
Snapshot AI
  • Himachal Pradesh withdraws cabinet rank from political appointees
  • 20% of appointees' salaries deferred until September 2026
  • Move aims to streamline protocol and cut government spending

In a move linked to cost-cutting and administrative restructuring, the Himachal Pradesh government on Tuesday withdrew the “cabinet rank” status granted to several political appointees across boards, corporations and commissions.

The decision takes immediate effect and applies to chairpersons, vice-chairpersons, deputy chairpersons, as well as principal and political advisors.

An official communication from the General Administration Department stated that the step was taken to “streamline administrative protocol.” The order, issued by the Chief Secretary and circulated to all administrative secretaries, directs departments to act promptly on the changes.

Alongside the withdrawal of rank, the government has also announced a temporary cut in payouts. According to the notification, “20% of the salary or monthly emoluments of these appointees would remain deferred until September 30, 2026,” indicating a broader push toward expenditure control.

The Congress-led administration, headed by Chief Minister Sukhvinder Singh Sukhu, has been under pressure over the state’s financial position. Officials say the latest measure is part of ongoing efforts to ensure fiscal discipline.

Removing cabinet rank is expected to reduce protocol-related spending, including expenses tied to security, official vehicles, and staff that typically accompany such designations.

The development comes just ahead of the upcoming budget session of the Himachal Pradesh Vidhan Sabha, adding to its political significance. The opposition has repeatedly criticised the government over what it described as “excessive political appointments” carrying cabinet status, particularly at a time when the state faces financial strain.

Government sources maintain that the decision is administrative rather than political, emphasising efficiency and cost rationalisation. The combination of withdrawing high-status designations and deferring a portion of compensation reflects a targeted approach to curbing expenditure without completely dismantling the existing structure of appointments.

All departments have been instructed to implement the directive without delay, signaling the government’s intent to move quickly on fiscal consolidation measures.

(With inputs from agencies)
Rewati Karan
Rewati Karan is Senior Sub Editor at Moneycontrol. She covers law, politics, business, and national affairs. She was previously Principal Correspondent at Financial Express and Copyeditor at ThePrint where she wrote feature stories and covered legal news. She has also worked extensively in social media, videos and podcasts at ThePrint and India Today. She can be reached at rewati.karan@nw18.com | Twitter: @RewatiKaran
first published: Mar 17, 2026 07:05 pm

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