Outlook Explainer: Why Himachal Pradesh CM Sukhu Stripped Cabinet Ranks Of Advisors, Political Appointees

In his early months in the Chief Minister’s office, Sukhwinder Singh Sukhu was often heard saying that running the government was easier than managing the party—he served as PCC president for nearly seven years.

 It was, indeed, a turbulent phase in his political career, overshadowed by persistent friction with the then Chief Minister, Virbhadra Singh.

On Tuesday, when he stripped seven political appointees, three of them sitting MLAs and two of his own staunch loyalists, of their ‘Cabinet ranks’—an official status granting special privileges and perks, the remarks have turned out to be more insightful and less rhetorical.

It also highlights the power plays and the Chief Minister’s governance style as the government navigates fiscal strains, especially after the centre stopped the Revenue Deficit Grant (RDG) for the state from the fiscal year of 2026-27.

Along with this, the government also decided to impose a 20 per cent cut on salaries and monthly emoluments for the chairpersons/vice-chairpersons and principal advisors till September 30, 2026.

The move, which comes ahead of the Chief Minister, who also holds the finance portfolio, presenting his budget for the year 2026-27 in the state assembly on March 21, is seen as a reflection of the government’s upcoming fiscal strategy.

Sukhu has already dropped hints about the budget, setting out a new path for exploring new areas of raising non-tax revenue. It is just the beginning, and in the near future, more such reforms will be seen.

“To begin with, we have withdrawn the cabinet rank given to these people, but in the near future, more such reforms will be taken, considering the financial health of the state,” Sukhu says

He also underscored the urgency of reform, asserting that the state must transition toward financial self-reliance in the absence of central support.

While his supporters have hailed it as an assertion of the government’s authority to enforce administrative discipline, the critics, both within the government and outside, have termed the move as ‘cosmetic and impulsive.' 

“First, he himself created a top-heavy administrative structure—a drain on the exchequer despite a cash-strapped economy overburdened by the Rs 1.20 lakh crore debt, but now at the end of his term, he is trying to pose as a reformist," said Leader of Opposition Jairam Thakur.

He questions what stopped the Chief Minister from taking this call when the High Court had quashed and invalidated the appointment of half a dozen Chief Parliamentary Secretaries (CPS)—all enjoying cabinet protocols, swanky vehicles, and bungalows.

Thakur accused the government of attempting to mislead the public with what he termed “superficial measures,” alleging that no meaningful steps have been taken to curb wasteful expenditure.

Those whose cabinet status was withdrawn included Chief Minister’s Principal Political Advisor Sunil Bittu; Principal Media Advisor Naresh Chauhan; Gukul Butail, Principal Advisor (Digital Technologies); R. S. Bali, first-time young MLA Chairman, HPTDC; Nand Lal, three-time MLA from Rampur; Bhawani Singh Pathania, Vice-Chairman of the State Planning Board; and Kehar Singh Khachi, Vice-Chairman of the HP State Forest Corporation.

While R S Bali, son of former minister (late) G S Bali, was not drawing any salary or allowances, Butail was receiving a token salary of Rs one. Khachi has also not taken any salary. 

However, the CM’s advisors were drawing a Rs 2.50 lakh per month salary and other perks attached to the position.

Although the exact fiscal benefits at the end of the year are unclear, the move seems politically sensitive, given that some of the impacted appointees may not accept it. “Once you've given a benefit to the people of your choice, then an abrupt withdrawal creates resistance and displeasure, even if the rank of a few of them was undue favour”, a senior official admits.

The CM's decision has also drawn appreciation.

Gokul Butail, for example, took just a few minutes to take it to social media to commend the decision.

“I welcome the government's decision to withdraw cabinet ranks from chairpersons and advisors in view of the financial challenges.

The 20% salary cut is also a responsible and timely step towards financial discipline,” he wrote.

Butail said, “Also, the government should review the officers working on service extensions. Experience is important, but we must ensure that deserving youth have equal opportunities to enter public service. I am working at a token salary of Rs 1, without any TA/DA, and I bear the expenses of my vehicle and accommodation myself. ”

The Chief Minister’s Principal Media Advisor, Naresh Chauhan, also supported the move to withdraw the rank. “The decision is bold, far-sighted, and in the state’s best interest. While some of us will be affected, the Centre’s arbitrary and unconstitutional move to end RDG makes such tough decisions necessary to achieve fiscal prudence,” he said. 

Sources in the state’s finance department inform that the current measures may look modest, but the Chief Minister has clearly told the budget teams to carry this beyond to explore some cuts on privileges of ministers, MLAs, and higher bureaucracy.

“This will, at least, put moral pressure on the opposition BJP for a broader consensus on austerity in the system of governance," says Naresh Chauhan. 

The move is going to overshadow Sukhu's plan to expand his cabinet, as he himself promised a few MLA cabinet berths to do some political balancing. One he has already named is Sunder Thakur, Kullu MLA. If that's the case, MLAs like R S Bali, MLA from Nagrota Bhagwan (Kangra), will not stay quiet, as his name was considered during the cabinet formation and the CM himself suggested him for a cabinet rank with the HPTDC Chairman position. The district of Mandi remains unrepresented, and so do the women MLAs, one of them Anuradha Rana, a tribal, and the other Sukhu's wife, Kamlesh Thakur.