The Himachal Pradesh government has announced a temporary deferment of salaries for Chief Minister Sukhvinder Singh Sukhu, cabinet ministers, and members of the legislative assembly (MLAs) for six months. This decision, made during the annual budget presentation, is in response to what Sukhu termed as 'extraordinary financial challenges' faced by the state. The deferment structure includes a 50% withholding for the Chief Minister, 30% for the Deputy Chief Minister and cabinet ministers, and 20% for other MLAs. This move comes as Himachal Pradesh grapples with an estimated loss of over ₹8,000 crore annually due to the discontinuation of the Revenue Deficit Grant (RDG) by the central government, which has historically helped bridge the state's revenue-expenditure gap. The 16th Finance Commission's recommendations have led to this significant financial shift, urging states to reduce reliance on central funds. The government has assured that the salary deferment is temporary, with withheld amounts to be disbursed once the financial situation stabilizes. Additionally, income tax and other mandatory deductions will continue to be calculated based on full salaries, ensuring compliance with statutory obligations.