Thursday, March 7, 2013

Punjab State Government still unable to pay salaries from February - heavy overdraft in place as the State Government borrowed more money than authorized from the Reserve Bank of India ....

http://timesofindia.indiatimes.com/india/Coffers-empty-Punjab-fails-to-pay-salaries-pensions/articleshow/18842568.cms


CHANDIGARH: If you are an employee of Punjab government, chances are that you would be running to the nearest ATM machine to check your salary status every few hours. More than 3.5 lakh employees -- including judges, IAS and PCS officers and ministers -- in Punjab are yet to get their salaries for February as the state government's coffers are empty.

The finance department is in an overdrive to get the salaries released even as the treasury does not have the required amount for paying salaries -- a bill of over Rs 1,300 crore, including pensions. The employees, who get paid on the last day of the month, have now been without their monthly salaries.

On Wednesday, chief minister Parkash Singh Badal broke his silence on the issue, saying, "The delay in the salaries occurred due to a technical hitch. It has now been resolved and wages would be disbursed soon".

However, despite the CM presenting a hopeful picture, finance department sources said that it will take at least another week or more before the government has enough balance to disburse the salaries.

The unprecedented situation occurred after the cash-starved government borrowed more money than its limit from the Reserve Bank of India, leading to heavy overdraft. Finance minister Parminder Singh Dhindsa acknowledged that the government has been crossing its overdraft limit every month. "There is nothing wrong in an overdraft," he said, "as long as it is within limits. Salaries could not be released till date because of technical snags on overdrafting and non-receipt of share from Central taxes."

Senior officials in the government confirmed that the state government is in a state of panic over the situation and efforts were on to put pressure on the Centre to release the state's Rs 500-crore share in Central taxes. The state government has also asked its urban development authorities in Mohali, Ludhiana and Bathinda to raise Rs 1,000 crore as loan against properties.

The employees are up in arms for having to go without wages. "Senior officers and ministers can afford to go without salaries but the lower rung employees are already finding it hard to fend for themselves. Our children's fee is yet to be paid, so are the domestic bills," said Tejinder Singh, vice-president of Punjab State Employees' Association.



Government of Punjab, India

From Wikipedia, the free encyclopedia
Government of Punjab
Seal of Punjab.gif
State Emblem
Seat of GovernmentChandigarh
Executive
GovernorShivraj Patil
Chief MinisterParkash Singh Badal
Deputy Chief MinisterSukhbir Singh Badal
Legislature
AssemblyPunjab Vidhan Sabha
SpeakerCharanjit Singh Atwal
Deputy SpeakerBhagat Chunni Lal
Members inAssembly117
Judiciary
High CourtPunjab & Haryana High Court
Chief JusticeJustice A.K. Sikri
The Government of Punjab also known as the State Government of Punjab , or locally as State Government, is the supreme governing authority of the Indian state of Punjab and its 22 districts. It consists of an executive, led by the Governor of Punjab, ajudiciary and a legislative branch.
Like other states in India, the head of state of Punjab is the Governor, appointed by the President of India on the advice of the Central government. His or her post is largely ceremonial. The Chief Minister is the head of government and is vested with most of the executive powers. Chandigarh is the capital of Punjab, and houses the Vidhan Sabha (Legislative Assembly) and the secretariat. Chandigarh also serves as the capital of Haryana, and is a union territory of India. The Punjab & Haryana High Court, located in Chandigarh, has jurisdiction over the whole state.[1]
The present Legislative Assembly of Punjab is unicameral, consisting of 117 Member of the Legislative Assembly (M.L.A). Its term is 5 years, unless sooner dissolved.[2]

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