Assembly in session: Government to pay salaries on Sept 5, pension on Sept 10

Chief Minister Sukhvinder Singh Sukhu today said the salary and pensions of employees and retirees of various departments in the state will now be disbursed on September 5 and 10. The fiscal prudence measures are in enforcement considering the grave financial crisis of the state.

‘GOVT CAN ONLY RAISE ~2,317 CR TILL DEC’

• CM Sukhvinder Singh Sukhu said as part of fiscal prudence, efforts were being made for the mapping of expenditure with receipts to save money being paid as interest on loans.
• He said they spent ~1,200 crore monthly on salaries and ~800 crore on pensions, so they needed ~2,000 crore every month.
• The state government could now only raise ~2,317 crore loan till December 2024, and it had to be used very judiciously, the CM added.

Replying to the issue of delayed salaries raised by Leader of Opposition Jai Ram Thakur in the Vidhan Sabha through a Point of Order, the Chief Minister said the employees would get salaries on September 5 and retirees pension on September 10. He clarified that this deferred payment of salaries will not apply to employees and pensioners of boards and corporations as they meet this expenditure through their own resources.

Sukhu said that by deferring the payment of salaries and pensions, the government will save Rs 3 crore monthly and Rs 36 crore annually being paid as interest on loans. “As part of fiscal prudence, effort is being made for mapping of expenditure with receipts to save money being paid as interest on loans. We spend Rs 1,200 crore monthly on salaries and Rs 800 crore on pensions, so we need Rs 2,000 crore every month for this,” he disclosed.

“In future whether salaries and pensions will be given on first of every month will depend on the financial position though efforts will be made to give it on first itself,” he said.

He also said the pleas of employees on the payment of EMIs on loans being paid on time would be taken into account. The state government can now raise only Rs 2,317 crore loan till December 2024 which has to be used very judiciously, he added.

The CM stated that the reason for delayed salaries and pensions is that the government wants to save the interest amount that has to be paid on the loans raised every month to pay salaries and pensions on first. “Salaries and pensions are to be paid on first while the Rs 520 crore revenue deficit grant (RDG) is received on the sixth of every month and Rs 740 crore share in central taxes on 10th. We have to raise loans at 7.5 per cent interest rate to pay salaries on first of every month,” he said

“When we came to power on December 11, 2022, there was a financial crisis. Our government is working towards making HP self-reliant by taking every section of society into confidence by citing the challenges,” he said. “We are trying to change the system and we are moving towards financial discipline,” the CM added.

“What were the reasons that in 2021 despite there being revenue surplus why Rs 10,000 crore DA and arrears were deferred by the BJP regime,” he asked. A liability of Rs 2,200 crore was left by the BJP government which believed in giving freebies by providing free water and opened 600 institutions, he said lashing out at the BJP. “We are moving towards fiscal discipline to improve the financial health of the state,” he added.

Raising a Point of Order, LoP Jai Ram Thakur said the serving and retired employees have not got their salaries which the House must debate. “The CM keeps changing his stance every day so the state wants to know the real position with regard to the state’s finances. The house must debate the issue,” said Thakur.