Shimla, Feb 10 (PTI) Chief Minister Sukhvinder Singh Sukhu on Monday said that the state government would continue with the Old Pension Scheme (OPS) and various public welfare initiatives, despite the central government's withdrawal of the Revenue Deficit Grant (RDG).

Two days after the finance secretary in his presentation indicated that discontinuation of RDG may force Himachal to roll back subsidies, freeze Dearness allowances and relief and migrate from the Old Pension Scheme (OPS) to the Unified Pension Scheme (UPS), the CM on Tuesday said that the government would continue these schemes by mobilizing its own resources.

Addressing the media persons here, he said that had the BJP been in power, they would have replaced the OPS with the UPS, effectively ending the security currently enjoyed by government employees.

He noted that while the Finance Department manages the technicalities of the state's fiscal health, the government's priority remains the enhancement of resources to drive the state forward, a statement issued here said.

Sukhu accused the previous BJP government led by Jai Ram Thakur of gross financial mismanagement between 2018 and 2021 and pointed out that during its five-year tenure, the previous government received a substantial Rs 54,000 crore as RDG and Rs 16,000 crore as GST compensation.

However, he alleged these funds were misused to favour contractors and cited the expenditure of nearly Rs 1,000 crore on the construction of buildings that currently stand vacant and underutilised.

In contrast, the Chief Minister highlighted that the present government has received only Rs 17,000 crore in RDG over the last three years but has successfully maintained strict economic discipline.

He said that the State Government has generated Rs 26,683 crore from its own resources and plans to implement further stringent measures to bolster the economy..

Stressing that the interests of the state must transcend party lines, he urged the BJP to support the state's pursuit of its rights before the Central Government rather than deceiving the public.

Addressing the critical nature of the Revenue Deficit Grant, which is provided under Article 275(1) of the Constitution to bridge the revenue-expenditure gap, the Chief Minister warned that the annual loss of Rs 10,000 crore would severely constrain the budget of a small hilly state like Himachal Pradesh.

He termed the withdrawal of the grant as "step-motherly treatment" by the Centre, asserting that Himachal Pradesh, by its geographical and economic nature, remains a revenue-deficit state. He declared his resolve to meet with the Prime Minister to seek the restoration of the RDG.

However, former BJP chief Minister Prem Kumar Dhumal had on Monday said that the prevailing fiscal stress is not a sudden development but a result of long-foreseen challenges that the government failed to address in time.

In a veiled jibe at the incumbent government, he remarked that while the government speaks of financial distress, it is simultaneously appointing a large number of chairpersons, advisors, and office-bearers, leading to substantial additional expenditure.

Spending on new vehicles, extra staff, and official facilities contradicts the principles of financial discipline, Dhumal said, emphasising that if the situation is genuinely grave, the first step should be to curb non-essential expenditure. PTI BPL MR