‘Rs 25,000-cr burden’: Punjab may appeal court’s 2-week DA dues deadline

In its order on Monday, the Punjab and Haryana High Court also restrained the AAP government from undertaking large-scale advertisement campaigns until the DA dues are paid.

3 min readChandigarhAug 3, 2026 02:36 PM IST

Punjab Finance Minister Harpal Singh Cheema. (File Photo)

The Punjab government is preparing to appeal against the Punjab and Haryana High Court’s order to clear pending dearness allowance (DA) dues of employees and pensioners within two weeks, with a highly placed source saying the financial liability would be beyond the state’s capacity to pay.

“The liability would be around Rs 25,000 crore. This is impossible for the state to pay. The state earns this amount of money in three months. It is not possible to pay such a huge amount. We will move the Supreme Court of India. There is no other option,” the government source told The Indian Express.

Finance Minister Harpal Singh Cheema, however, said the government would take a call after examining the division bench’s order issued on Monday. “We are waiting for the detailed order. I cannot comment on anything right now. We will see,” he said.

The division bench also restrained the state from undertaking large-scale advertisement campaigns until the dues are paid, indicating that public funds should first be used to discharge employees’ lawful dues.

DA parity with civil service officers ‘unsustainable’

The order resulted from appeals filed by the government and Punjab State Power Corporation Limited (PSPCL) against a single-judge judgment that directed DA payment on par with officers of all-India services and members of the judiciary. The single-judge bench held that paying a higher rate of DA to IAS, IPS, and IFS officers and judicial officers while denying the same benefit to other state employees and pensioners amounted to discrimination. The bench also directed the government to clear the pending dearness relief (DR) dues.

Also Read | Cash-strapped Punjab plans staggered DA arrears payment, to inform High Court

The government challenged the judgment, contending that the single-judge bench exceeded the scope of judicial review and that implementing the order would impose an unsustainable financial burden on the state.

During the hearing before the division bench, the government pegged the liability at over Rs 14,000 crore. Government sources now estimate the liability at around Rs 25,000 crore.

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The high court’s direction comes at a time when the AAP government has spent around Rs 3,000 crore on disbursing financial assistance under its flagship scheme for women, adding to the strain on the state’s finances.

The issue is expected to figure prominently during the forthcoming Assembly session, with the Opposition likely to target the government over the court’s observation linking publicity expenditure with the obligation to clear employees’ pending dues first.

Kanchan Vasdev

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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