The Punjab Government, which was pinning its hope on the new tax regime — the Goods and Services Tax (GST) — for increasing the State revenue collection besides meeting the deficit it was facing, is still facing the shortage of Rs 800 crore at the end of first month of GST.
“The State is short of Rs 800 crore at the end of first month of the GST,” shared State Finance Minister Manpreet Badal on Friday, a day before the meeting of the GST Council on Saturday.
Manpreet said that he would raise the issue of revenue shortfall at the Council meeting.
“Punjab was expecting Rs 1,650 crore in July this year by way of taxes. But we have received only Rs 846 crore. There is a revenue shortfall of around Rs 800 crore,” he said.
As the Government has withheld the release of salaries of the employees and also that of ministers, Manpreet maintained that the State has to borrow money on interest to pay up the salaries. Punjab Government’s monthly salary bill is Rs 1,900 crore.
Even as the State is yet to receive its share of Central Government devolutions from various schemes, the Government has decided to pay the salary to its 3.95 lakh employees in aphased staggered manner by September 14.
“The Centre is sitting on a huge pile of money and is earning interest on it,” claimed Manpreet.