The Punjab government has said it is working to clear employee pay commission arrears while managing a financial liability of ₹14,191 crore inherited from previous administrations. Finance Minister Harpal Singh Cheema stated that the current government has already released more than ₹6,000 crore under a court-approved repayment plan and remains committed to settling all legally valid dues.
Speaking at a press conference in Chandigarh, Cheema said the government was also reviewing the recent Punjab and Haryana High Court judgment on dearness allowance (DA) payments before deciding its next legal steps.
Government Blames Previous Administrations
According to the Finance Minister, the financial burden dates back to the implementation of the employee pay commission recommendations.
He said the pay commission report was prepared in 2016 during the Shiromani Akali Dal-BJP government but was not implemented immediately. The recommendations were eventually introduced in July 2021, during the Congress government, resulting in unpaid dearness allowance (DA) arrears accumulated between January 2016 and July 2021.
Cheema claimed this created a liability of ₹14,191 crore, which the present Aam Aadmi Party (AAP) government inherited after coming to power.
More Than ₹6,000 Crore Already Released
The Finance Minister said employee organisations later approached the High Court seeking payment of pending arrears.
Following the legal proceedings, the Punjab government prepared a structured repayment plan that received the court’s approval.
Cheema said more than ₹6,000 crore has already been paid to employees under the approved plan, while the remaining amount will be released in phases.
Punjab Offers Higher Pay Scales, Says Minister
Defending the state’s salary structure, Cheema said Punjab already provides some of the highest government pay scales in the country.
He claimed that salaries for several categories of employees are higher than those offered by the Central Government.
According to the minister, the state argued before the court that maintaining both higher basic pay and Central Government-level DA rates at the same time would place significant financial pressure on Punjab’s economy.
Government Reviewing High Court Judgment
Cheema said the state government is carefully studying the recent High Court ruling related to DA payments.
He stated that the government’s legal team is examining constitutional provisions, previous court judgments and expert legal opinions before deciding whether to challenge the order in the Supreme Court.
The Finance Minister added that all constitutionally and legally valid dues would continue to be honoured.
Government Promises Transparent Financial Management
Cheema said the AAP government remains committed to clearing all pending employee liabilities despite inheriting a substantial financial burden.
He added that the government would continue implementing its repayment plan in a transparent and systematic manner while balancing the state’s financial responsibilities.