Why Only Punjab Govt Blaming GST For Non Payment of Salaries?

In an image breaking scenario, the Punjab government have come forward and have slashed upon the centre for not passing the appropriate GST compensation to the state, amounting to INR 630 crore. The state government has also alleged that for the salary payments, they have to raise development bonds in order to payout the salary of the employees of the state government.

The state government has been slipped into the fiscal problems due to the non-payment by the centre. State finance minister Manpreet Singh Badal said that “We have not been paid GST compensation of Rs 633 crore by the Centre that has led to cash flow problems to the state. It was supposed to be disbursed 15 days ago.”

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“We have raised Rs 700 crore through state development bonds (for payment of salaries) and now the salary has been released,” he added. A total of 1800 crores are needed every month to pay out employees salary in Punjab and this time the conditions are tough to pay the outstanding amount of salaries.

The government has continuously hold salaries for the second time and now the state employees are against the state government. Punjab Civil Secretariat Staff Association have protested against mismanagement of governance of the government. SAD spokesman and former minister Daljit Singh Cheema stated that “If Punjab is blaming the GST system for its fiscal problems, then how other states, which are also under GST system, are able to pay salaries of their employees.”