Dhumal writes to PM,seeks aid of Rs 1,500 crore

Himachal has a committed liability of over Rs 2,200 crore on account of salary and pension arrears from January 1,2006,to August 31,2009,after the implementation of the Sixth Pay Commission recommendations for its employees.

“However,the 13th Finance Commission had under estimated state salary,pension and interest liabilities. There is a gap of Rs. 617 crore between the budget estimates for salaries and the amount assessed by the commission for current financial year. The Commission had recommended a growth in salary expenditure by only 2.27 per cent for 2011 to 12 over 2010 to 11,while the government had already released dearness allowance installment of 8 percent to its employees,in addition to the annual increment,” the letter reads.

“Due to inflation,the plan size for 2011-12 has to be even higher than Rs 3,578 crores ( if one goes by the amount left over as per the 11 five year plan allocations) there for enhancement in the special plan assistance of at least Rs 1,500 crore as compared to Rs 782 crore during 2010-11 is required,to meet the committed liabilities in next financial year,” it says.

In wake of financial position of the state,the Center has also been asked not to insist upon the fiscal deficit limit of 3.5 per cent for 2010-11 and 3 per cent for year 2011 till 2015,fixed by the 13 Finance Commission for Himachal Pradesh and release the state specific grants recommended by the Finance Commission,irrespective of this.