Shimla: Cash strapped Himachal government today announced partial releasing of arrears on account of revised pay scales for class III and IV employees as a gift before the upcoming Diwali festival.
Chief Minister Prem Kumar Dhumal let a select media know that the government would be making a cash payment of Rs 10,000 each for all Class III and Class IV employees as arrears of the revised pay scales.
This payment would result into a cash outflow of about Rs 175 to 200 crore, he said.
All departments have been directed to release the payment to their employees in cash before the Diwali Festival, he said.
However, the chief minister did not fail to remind the people that because of under valuation of committed liabilities by the 12th Finance Commission, the states financial problems had got aggravated.
â€œFinancial constraints would not be allowed to come in the way of planned development and welfare of the people,â€ he said.
The chief minister said that the commission undervalued state liabilities by over Rs 1,650 crore, he said, whereas dearness allowance of the employees and pensioners had already increased by 18 percent.
Other than meeting committed liabilities of salary and pensions the state also has to repay several thousands of crores loans borrowed which also have to be serviced with a significant amount going towards interest payments.
Adding to the states financial woes, the union finance ministry had put an embargo of raising of loans at Rs 1566 crore for the current year whereas the planning commission had approved a borrowing limit of Rs 1731 crore, said Dhumal.