Shimla: In a significant administrative and financial reform initiative, the Himachal Pradesh government has proposed a reduction in the sanctioned strength of Indian Administrative Service (IAS) and Indian Forest Service (IFS) officers in the state, citing mounting fiscal pressures and the need for more efficient utilisation of resources.
According to officials familiar with the development, the state government has already sent a proposal to the Centre seeking to reduce the sanctioned strength of IAS officers from 153 to 147. Simultaneously, another proposal aimed at cutting the sanctioned strength of Indian Forest Service (IFS) officers from 114 to 83 is also in the final stages of consideration.
The move comes at a time when the hill state is grappling with severe financial stress following the discontinuation of the Revenue Deficit Grant (RDG), a key source of fiscal support for Himachal Pradesh.
Proposal Sent to Centre for IAS Cadre Rationalisation
According to a senior official, the state government believes that the existing IAS cadre strength exceeds the actual administrative requirement and that a leaner structure would improve efficiency while reducing unnecessary expenditure.
“At present, the sanctioned IAS cadre strength is 153, which has been proposed to be reduced to 147. Similarly, a separate proposal to reduce the sanctioned posts of Indian Forest Service officers from 114 to 83 is also in the final stage of consideration,” the official said on the condition of anonymity.
The official further disclosed that the state government may also review the cadre strength of Indian Police Service (IPS) officers in the future as part of a broader administrative rationalisation exercise.
“In addition, the state government is also considering reviewing the cadre strength of Indian Police Service (IPS) officers in the future to rationalise that cadre as well,” the official added.
Revenue Deficit Grant Withdrawal Behind Financial Pressure
The proposed reduction in bureaucracy is closely linked to the worsening fiscal condition of the state after the Revenue Deficit Grant was discontinued based on the recommendations of the 16th Finance Commission.
Officials estimate that the withdrawal of the grant will result in a financial loss of nearly ₹8,000 crore to ₹10,000 crore annually for Himachal Pradesh between 2026 and 2031. The development has significantly impacted the state’s financial planning and expenditure priorities.
The strain was clearly reflected in the Himachal Pradesh Budget for 2026-27. The total budget outlay was reduced from ₹58,514 crore in 2025-26 to ₹54,928 crore in the current financial year, indicating the extent of fiscal compression being faced by the government.
Chief Minister Sukhvinder Singh Sukhu had earlier described the prevailing fiscal situation as one of “extraordinary financial challenges” arising from the discontinuation of the Revenue Deficit Grant.
Government Seeks Better Utilisation of Existing Officers
Officials said the government believes administrative efficiency can be maintained even with fewer officers if existing manpower and institutional resources are managed more effectively.
According to senior bureaucrats, maintaining more sanctioned posts than practically required not only creates administrative complications but also adds a significant financial burden on the exchequer.
“According to the government, having more posts than required is not only administratively impractical but also places an unnecessary financial burden on the state. Funds that should ideally be spent on public welfare are instead being used for officers’ salaries,” a senior officer in the state government said.
The government’s argument is rooted in the idea that rationalisation of senior administrative posts could free up resources for developmental and welfare-oriented expenditure, especially at a time when the state is attempting to balance fiscal discipline with social commitments.
High Expenditure on Senior Officers
Officials estimate that the annual expenditure incurred on a single IAS or IFS officer ranges between ₹45 lakh and ₹50 lakh, including salary, allowances, infrastructure, accommodation, transport, and other administrative expenses.
Given this expenditure pattern, the proposed reduction in cadre strength is expected to generate savings worth several crores of rupees annually.
The government intends to redirect these savings towards welfare schemes, infrastructure development, and public service delivery, particularly in sectors facing resource constraints due to shrinking revenues.
Detailed Study Conducted Before Proposal
Sources said the proposal sent to the central government was prepared after an extensive examination of administrative, financial, and functional parameters.
“While preparing the proposal, the state government conducted an in-depth study of all administrative, financial, and functional aspects. Strong justification and reasoning have been presented in the proposal sent to the central government, increasing the likelihood that the initiative will be approved as a necessary and practical reform. The move is being seen as an important step towards good governance,” the officer said.
Officials believe that if approved, the rationalisation exercise could emerge as a model for other financially stressed states seeking to optimise administrative expenditure without compromising governance delivery.
Possible Wider Administrative Reforms Ahead
The indication that the IPS cadre may also come under review suggests that the Himachal Pradesh government could be preparing for a larger restructuring exercise across All India Services in the state.
Observers note that such a move would be unusual, as states generally seek an increase in cadre strength to accommodate growing administrative responsibilities. However, Himachal Pradesh’s current financial realities appear to be driving a different approach focused on fiscal sustainability and lean governance.
The proposals are now awaiting consideration by the central government, which takes the final decision on cadre strength revisions for All India Services in consultation with the concerned state governments.
