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Punjab can’t pay full DA, but slashes property tax
Ruchika M Khanna/TNS

cabinet decisions The state government has extended the deadline for regularisation of illegal colonies up to November 5. It has formulated a policy for leasing out shamlat land for 33 years for industrial, commercial, educational or professional purposes with the prior approval of the govt.

Chandigarh, October 25
Strange are the ways of the Punjab Government. On the one hand, the state government is citing its poor revenue generation as a reason for not granting full dearness allowance (DA) to its five lakh employees, while on the other, it has succumbed to political pressure and reduced tax on commercial property.

The state government today issued a notification, granting 8 per cent dearness allowance to its employees. While this DA had to be granted to employees from January, the notification issued today granted the DA for just four months — from July 1 to October 31, 2013. This has come as a rude shock to employees, who were hoping that they would get the entire DA before Diwali. The government’s official stand now is that the decision of releasing the DA for the period January to June would be taken later.

The total liability on the state government for releasing the entire amount of DA to the employees is around Rs 750 crore, which includes the DA to employees and arrears to the retired staff. The state continues to face revenue deficit of Rs 600 crore a month.

The notification issued today also says that pensioners would get arrears of this DA — for four months — in cash. But, the state government has reduced property tax on residential, industrial and institutional property by almost 50 per cent.