Punjab Government Faces ₹15,000 Crore Burden Over Dearness Allowance Payments
Punjab govt faces Rs 15,000-cr burden as high court tells it to clear DA Government preparing to file an appeal before double bench of High Court

Image: The Indian Express
The Punjab government is facing a financial burden of ₹15,000 crore following a High Court order to clear pending dearness allowance (DA) for employees and pensioners by June 30. The government plans to appeal the decision, citing insufficient resources to meet the payment demands.
- 01Punjab government ordered to clear ₹15,000 crore in pending dearness allowance by June 30.
- 02Government plans to appeal the High Court's decision due to financial constraints.
- 03The state has a monthly salary bill of ₹3,200 crore, impacting its budget for social assistance schemes.
- 04Pending DA payments have been accumulating since July 1, 2023, with six installments due.
- 05The financial assistance schemes for women may be affected if the government must pay the DA.
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The Punjab government is grappling with a ₹15,000 crore burden after the Punjab and Haryana High Court mandated that it clear pending dearness allowance (DA) payments for employees and pensioners by June 30. Following a recent loan of ₹1,500 crore and delays in salary disbursement, officials have indicated that the state lacks the necessary resources to fulfill this obligation. Finance Minister Harpal Cheema noted that the pending dues would significantly impact the state's budget, which already allocates over 50% of its tax revenue to salaries for approximately 300,000 employees. The government has released five DA installments, but payments have been delayed since July 1, 2023. The administration is under pressure to maintain financial assistance programs, including monthly payments for women, which could be jeopardized if the DA payments are prioritized. The next court hearing is scheduled for July 2.
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The Punjab government's financial strain could lead to cuts in social assistance programs for women if it prioritizes DA payments, affecting many low-income families.
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