State

Punjab awaiting GST share; to be able to pay salaries

The state cannot borrow more than Rs 2,800 crore under the FRBM limit

Punjab awaiting GST share; to be able to pay salaries

The employees of Punjab government may have to bear yet another delay in receiving the salaries as the state is said to be cash-strapped as of now.

This comes amid clarification that central government has to pay the state its share of Goods and Service Tax (GST).

Sources said the state could not borrow money this time for salaries as it already had pending bills worth Rs 6,600 crore.

The state cannot borrow more than Rs 2,800 crore under the FRBM limit.

It was informed that Punjab state has to pay Rs 3,500 crore towards debt-servicing in March itself.

It is all the more concern that besides a salary bill of Rs 1,800 crore, the state has a pending bill of Rs 4,000 crore towards power subsidy which has to be paid before the end of this fiscal.

This would be for the third time in the 10-month rule of the Congress-led government that the salaries would be delayed.

It was mentioned by government sources that the state’s financial condition was turning worse, especially during these months when the government had to borrow money for debt servicing.

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