Himachal Pradesh Finance Department has issued an instruction letter allowing government officials to adjust internet connection (broadband) bills from their telephone allowances, a move that comes at a time when the state is grappling with a severe financial crisis and the recent discontinuation of Revenue Deficit Grant (RDG) by the Centre.
According to the new directive, bills for internet connections installed at government residences of officials can now be reimbursed from the state treasury. The Finance Department had originally issued guidelines on August 25, 2010, regarding reimbursement of landline phone bills. The latest instruction updates this to include internet expenses in line with modern requirements.
Financial context raises questions
The timing of this decision has drawn attention, coming just days after the central government completely eliminated the RDG provision in the Union Budget following the 16th Finance Commission report. Himachal Pradesh had been receiving approximately Rs 37,199 crore as revenue deficit grant under the 15th Finance Commission between 2021 and 2026. The state received Rs 6,258 crore in 2024-25 alone.
The state’s revenue deficit has been increasing year after year, and the loss of RDG is expected to significantly impact the government’s ability to meet its financial obligations. The government has called a special Assembly session on February 17 to discuss this issue and pass a resolution urging the Centre to restore the grant.
Allowance structure
Under the existing telephone allowance structure established in 2010, different categories of officials receive varying amounts:
- Secretary-level officers: Rs 2,500 monthly for telephone (landline) plus Rs 900 mobile allowance
- Divisional Commissioner: Rs 2,100 and Rs 800 respectively
- ADGP and MD-level officers: Rs 2,000 and Rs 700 respectively
- Special Secretary: Rs 1,300 and Rs 500 monthly
- Conservator of Forest: Rs 1,300 and Rs 600
- Other officers: Rs 700 and Rs 400 bi-monthly
The new order allows internet expenses to be adjusted within these existing allocations, effectively making internet connections at government officials’ residences reimbursable.
Government’s rationale
The state government has justified the decision by citing the need to expedite workflow and acknowledging the rapidly changing internet requirements in modern governance. Officials argue that reliable internet connectivity has become essential for administrative work, especially in an increasingly digital governance environment.
However, the move comes at a time when the state is facing mounting debt and struggling to meet salary commitments. While the internet allowance is technically an adjustment within existing telephone allowances rather than an additional expense, critics may question whether this is the appropriate time to enhance benefits for officials when the state’s financial health remains precarious.
The government has not issued any statement addressing concerns about the timing of this decision in relation to the state’s financial challenges.
