Cash crunch hits Punjab’s retirees

LUDHIANA: Retired employees of the Punjab government are awaiting payment of their bills worth around ₹928 crore, currently pending with the state’s finance department.

While the empty coffers of the state government are to be blamed for this scenario, retirees are running from pillar to post to receive their hard-earned savings.

On an average, each employee or civil servant gets ₹35 lakh as gratuity and other benefits upon retirement.

Sources in the finance department said around 12,000 bills of hundreds of retired employees across the state are pending with the respective treasuries of various districts.

The bills include payment of gratuity, leave encashment, General Provident Fund (GPF) as well as the amount related to Group Insurance Scheme (GIS).

These retirees, encompassing all ranks from Class 1 to class 4, mostly include those who retired this year, with their bills pending for the past over four months. Also, funds amounting to ₹ 2 crore pertaining to Group Insurance Scheme are yet to be released.

Sources said that while cash crunch has always been there in the state, recent policies of the government such as reduction in stamp duty on registration of property have adversely impacted the collection of revenue in the state.

Moreover, glitches in GST collection have also resulted in the revenue shortfall of billions of rupees in the state, they said.

In Ludhiana alone, bills amounting to ₹ 36 crore of over 250 retired employees are pending with the treasury office.

The employees, who have retired after spending years working at the office of the deputy commissioner, the police department, excise and taxation, industries, irrigation, water supply and various other departments, can be seen daily making queries related to payment of their bills at the district treasury office.

A senior official of the finance department, who sought anonymity, admitted there is a huge pendency of retirees’ bills and the department is working to expedite the payments.