Govt faces fund crunch due to salary burden

SHILLONG: With almost half of the state revenue disbursed for salary and pension of the government employees, the state government has sought funds from the 15th Finance Commission to tide over the crisis.
A senior government official on Thursday admitted to the burden on the government due to the increased salary and pension following the fifth pay commission recommendations.
An official document submitted to the 15th Finance Commission also said the annual impact of the fifth pay commission recommendation is Rs 1000 crore.
Due to financial constraints, the state government started implementing the new pay only from December 2017 though the effective date of implementation was from January the same year.
The government has already paid the arrears in two installments, 40 per cent in the first year and 30 per cent in the second year. In December this year, the government is expected to clear the remaining 30 per cent dues.
An official source said the full impact of the implementation of the fifth pay commission was felt by the state government in 2018-19 which resulted in the fiscal deficit jumping from Rs 237 crore in 2017-18 to Rs 1498 crore in 2018-19.