Chandigarh, October 24
The Punjab Government has failed to curtail its administrative expenses and continues to splurge, even as it faces an average deficit of Rs 600 crore a month. The state continues to splurge on buying a fleet of swanky cars while it dilly-dallies on clearing the pending arrears and bills to its employees.
The government had earlier announced that it would release the remaining 30 per cent arrears to its employees by December. The recommendations of the Fifth Pay Commission were implemented in 2011.
The government has been releasing the arrears to the employees in installments. However, because of a slow growth in revenue this year, the government has so far not released arrears to its employees.
Sources said the state government now proposed to release just 15 per cent of the arrears by December. Since the total amount that the state has to pay on account of arrears is almost Rs 750 crore (Rs 1000 crore including pension). “While half of the arrears will be deposited in the General Provident Fund of the employees, the remaining will be released as cash payment,” said an official.
It is learnt that till August 2013, as against revenue receipts of Rs 12,500 crore, the revenue expenditure was Rs 13,400 crore. In August 2012, the revenue receipts were Rs 10,800 crore and revenue expenditure was Rs 13,700 crore. This year, the total VAT collections till August were Rs 5,900 crore as against Rs 5,400 crore in August 2012. Though the VAT collections have increased, the government is losing revenue on account of a ban of the registration of sale deeds of plots in illegal colonies. The stamp duty collections have come down to Rs 1,100 crore as against Rs 2,200 crore in August 2102.
The sources said though the 3.15 lakh government employees were likely to get the 8 per cent dearness allowance before Diwali, they were hoping the state’s revenue to grow substantially in October and November because of festival sales and VAT on paddy.
The Punjab Government has failed to curtail its administrative expenses and continues to splurge, even as it faces an average deficit of Rs 600 crore a month. The state continues to splurge on buying a fleet of swanky cars while it dilly-dallies on clearing the pending arrears and bills to its employees.
The government had earlier announced that it would release the remaining 30 per cent arrears to its employees by December. The recommendations of the Fifth Pay Commission were implemented in 2011.
The government has been releasing the arrears to the employees in installments. However, because of a slow growth in revenue this year, the government has so far not released arrears to its employees.
Sources said the state government now proposed to release just 15 per cent of the arrears by December. Since the total amount that the state has to pay on account of arrears is almost Rs 750 crore (Rs 1000 crore including pension). “While half of the arrears will be deposited in the General Provident Fund of the employees, the remaining will be released as cash payment,” said an official.
It is learnt that till August 2013, as against revenue receipts of Rs 12,500 crore, the revenue expenditure was Rs 13,400 crore. In August 2012, the revenue receipts were Rs 10,800 crore and revenue expenditure was Rs 13,700 crore. This year, the total VAT collections till August were Rs 5,900 crore as against Rs 5,400 crore in August 2012. Though the VAT collections have increased, the government is losing revenue on account of a ban of the registration of sale deeds of plots in illegal colonies. The stamp duty collections have come down to Rs 1,100 crore as against Rs 2,200 crore in August 2102.
The sources said though the 3.15 lakh government employees were likely to get the 8 per cent dearness allowance before Diwali, they were hoping the state’s revenue to grow substantially in October and November because of festival sales and VAT on paddy.
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