Punjab govt faces ₹14,191 crore pay arrears; says inherited from previous regimes

Chandigarh, August 4: Punjab Finance Minister Harpal Singh Cheema on Tuesday said the state government has inherited a ₹14,191 crore liability towards employee pay commission arrears due to the policies of the previous SAD-BJP and Congress governments. He noted that Punjab already pays some of the highest government pay scales in the country, exceeding Central Government pay in several categories.

Addressing a press conference at Punjab Bhawan, Cheema said the employee pay commission report was originally formulated in 2016 during the tenure of the SAD-BJP government but was not implemented at that time. The report was finally implemented in July 2021. As a result, Dearness Allowance (DA) arrears from January 1, 2016, to July 2021 were frozen, creating the current liability.

The Finance Minister added that although the implementation process was initiated under the previous regime, the then Congress government did not release any funds towards clearing these arrears, leaving the entire burden for the present government.

Cheema explained that after employees approached the High Court, the AAP-led Punjab Government prepared a structured liquidation plan, which was accepted by the court. Out of the total liability of ₹14,191 crore, the government has already paid over ₹6,000 crore to employees. The High Court approved the plan, and its implementation is proceeding, he said.

Responding to a recent High Court judgment regarding current DA disbursements, the Finance Minister said certain constitutional benchmarks and judicial precedents appeared to have been overlooked in the interpretation by the single bench. He referred to a 2005 Constitution Bench judgment in the State of Maharashtra case to argue that Punjab already offers some of the highest pay scales in the country, exceeding Central Government pay structures in several categories.

Presenting comparisons between Punjab and Central Government pay scales for various posts, Cheema said the state's legal argument was that a state cannot simultaneously sustain both the highest basic pay scales and the highest Central DA rates when its pay structures are already significantly higher. He also noted that the previous Congress government had itself decided that newly recruited employees would be inducted under the Central Pay Commission guidelines.

Reiterating the government's commitment to employees, the Finance Minister said all constitutionally and legally valid dues would be paid. He said the legal team is examining the recent judgment in detail, reviewing judicial precedents and consulting experts to determine the appropriate course, including the possibility of filing an appeal before the Supreme Court.

Cheema concluded by saying that despite inheriting a heavy fiscal burden from previous governments, the Punjab Government is committed to resolving all pending financial liabilities in a systematic and transparent manner.