Punjab govt faces Rs 15,000-cr burden as high court tells it to clear DA Government preparing to file an appeal before double bench of High Court
During the hearing in the high court, Advocate Rashpinder Singh, the counsel for employees of the Punjab State Power Corporation Limited, submitted that DA installments with effect from July 1, 2023 have not been released to serving employees and pensioners.
Punjab is staring at a Rs 15,000-crore burden, days after it secured a Rs 1,500 crore loan and released the salary for March after a week’s delay, as Punjab and Haryana High Court has directed the state administration to clear pending dearness allowance (DA) of the employees and pensioners by June 30.
Already scraping the barrel to pay Rs 1,000 per month financial assistance to women voters, the fund-starved Punjab government has decided to file an appeal before a division bench of the high court.
“We are preparing a review petition. It will be done soon. Otherwise, the state does not have resources to pay such a huge amount,” a Punjab government official told The Indian Express.
On Wednesday, a bench of Justice Harpreet Singh Brar, hearing a bunch of petitions regarding the delayed DA payments, directed the Punjab government to clear pending dues for all employees and pensioners by June 30. The court fixed the next hearing for July 2.
Finance Minister Harpal Cheema said, “The pending dues will cost us about Rs 15,000 crore. We have already cleared DA dues till 2023 in 2024, which cost us Rs 14,100 crore. We inherited these dues from the Congress government”.
Cheema heads the three-member Cabinet sub-committee set up by Chief Minister Bhagwant Mann to address the issue.
The Aam Aadmi Party (AAP) government has already released five DA instalments to eligible employees. The fifth instalment, due on January 1, 2023, was paid on November 1, 2024. Dues have been pending since July 1, 2023. By June 30, six instalments will be due, with the latest from January 1, 2026.
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Punjab Government Employees Association president Sukhchain Singh Khaira too said that six installments are due. He rued that the government is preparing to file an appeal against the single-bench decision.
The DA is revised twice a year by the central government, on January 1 and July 1, based on the All India Consumer Price Index. Punjab has historically followed the Centre’s pattern since the first Pay Commission.
Punjab already has a monthly salary bill of Rs 3,200 crore. A senior official said employee salaries in the state are among the highest in the country. “Over 50 per cent of the state’s own tax revenue, estimated at Rs 70,000 crore, goes into paying salaries amounting to Rs 39,000 crore annually for about 3 lakh employees,” the official said.
The government is also under pressure to fund financial assistance schemes, including Rs 1,500 per month for SC women and Rs 1,000 for general category women, with Rs 9,400 crore allocated this fiscal. “If the state has to pay Rs 15,000 crore this year, it will cast a shadow on the scheme. The government cannot compromise on that promise,” a source said.
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Earlier, during the hearing in the high court, Advocate Rashpinder Singh, the counsel for employees of the Punjab State Power Corporation Limited, submitted that DA installments with effect from July 1, 2023 have not been released to serving employees and pensioners. The petitioners further submitted that they habe been subjected to “hostile discrimination”, even as IAS, IPS, IFS and judicial officers within Punjab have been receiving DA regularly from the actual due dates of the respective installments.
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.
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