Uttarakhand government takes Rs 250 crore loan to pay off salaries

The increasing burden of the wages and pension of the personnel in the state forced the government to raise 250 crore loans from the market after a fortnight. After taking 500 crore loans in the current month, the debt figure has reached 1000 crore in four months of the financial year.

First, the seventh pay scale, then arrears, after that with the allowances, increasing the perks of government employees one after another, has increased the burden on the public exchequer.

The condition is that the revenue of the state government is not being increased in comparison to the expenses incurred on different debts, including salaries, honorarium, pension of personnel. Consequently, the government is obliged to borrow from the market.

After barely two months have passed since the last loan, the situation has become an odd situation for the government. The government had taken 500 crore loan in the first month of the current financial year 2019-20 in April. The government did not have to borrow for the next two months in May and June.

In June last year, the government has made many decisions related to pension and salaries of personnel. Because of this, the financial burden on the public exchequer has increased every month. The expenditure that was close to one thousand crore per month, has now crossed the one and a half thousand crore.

The burden of organizing the Himalayan Conclave is also on the government. The government took 250 crore loan on the 16th of this month. Now 15 days later, on Tuesday, it has taken another 250 crore loan. So far, the government has taken Rs 1000 crore loan. Finance Secretary Amit Negi confirmed the loan of 250 crore.

He said that the government needs funding for development works. The State Government has fixed the quarterly interest rate of 7.9 per cent on the amount deposited in general provident fund to its employees.

According to the provisions of the Uttarakhand General Provident Fund Rules, 2006, Contributory Provident Fund Rules, Uttar Pradesh Contributable Provident Fund Pension Rules 1984 and Uttarakhand, the interest rates for the personnel and pensioners have been implemented from July 1, 2019. They will be effective till September 30. Finance Secretary Amit Negi has issued the order in this regard.