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Chandigarh, September 5
With Punjab’s coffers running dry, the government has decided to pay the salary to 3.95 lakh employees in a staggered manner by September 14. It will be releasing just Rs 100 crore a day towards payment of salaries and pension. The monthly salary bill is Rs 1,900 crore.
Till today, the fourth day of the month, the salaries of barely 25 per cent of the staff have been paid. The Finance Department has made a “course” for releasing salaries of its entire workforce. While pension of most employees was the first to be released, the department has now started releasing salaries in parts.
Finance Minister Manpreet Singh Badal said the state had not received its share of Central government devolutions for various schemes. He said: “A sum of Rs 761 crore is to be paid by the Centre. This devolution is used to clear the committed liabilities, including payment of salaries. We have no option but to stagger the salary bill.”
“Punjab is not the only state where the cash flow has been disrupted. The issue was discussed at length by officials from all states in a meeting with the RBI. Hopefully, within a month, the cash flow will improve,” he added.
The state is also finding it increasingly difficult to roll out its development and social agenda.
Even the much-hyped farm debt relief is held up. Also, the state coffers have not received any money from the state’s share in central goods and services tax (CGST) as also from the integrated (interstate) goods and services tax (IGST).
Vivek Pratap Singh, Excise and Taxation Commissioner, said: “Last year, the VAT collections in August were Rs 1,255 crore. This year, we have received Rs 500 crore as VAT on petroleum products and Rs 580 crore on other things which are outside the purview of the GST. However, we are yet to receive the IGST – which will rev up the total revenue collection. In Punjab, the IGST and CGST have not been credited. Once this is done within a fortnight, Punjab’s devolution is expected to be much higher than last year.”
