Punjab Court Orders State to Clear Pending Allowance Dues

The Punjab and Haryana High Court ordered the Government of Punjab on Monday to clear all pending Dearness Allowance (DA) for employees and pensioners within a two-week deadline. The state government has resisted the ruling, arguing that its employees already earn salaries 30% to 70% higher than central government counterparts due to existing state pay scales.

Officials stated that while the central government DA rate is 60%, Punjab provides 42%. The administration contends that applying the higher central rate on top of its current scales is financially unsustainable and that DA fixation is a sovereign policy decision. Finance Minister Harpal Singh Cheema expressed surprise at the order, noting that the state was already following a liquidation plan to clear 14,191 crore rupees in dues.

Implementing the court's judgment would cost the state exchequer approximately 20,000 crore rupees. The government warns this would increase the state's salary and pension burden, which it claims is already the highest among major Indian states, and subsequently reduce funding for capital and developmental expenditures. The ruling Aam Aadmi Party is currently examining the judgment to determine if a legal appeal is necessary.