Punjab withholds salaries to conceal budget deficit

Pakistan

Punjab withholds salaries to conceal budget deficit

Close

Punjab govt has withheld the checks for payment of employees salaries to conceal its budget deficit

29 June,2012 04:36 pm

According to Dunya News, Punjab CM Shahbaz Sharif gave approval to this unusual step wherewith the Punjab govt’s accounts in the State Bank of Pakistan will show Rs 11 billion as surplus amount at the end of the fiscal year 2012.In a summary Chief Minister Shahbaz Sharif has directed the provincial and district governments not to cash any cheque for the salaries of their employees for the month of June.The step will reflect the budget deficit of the Punjab govt less than the actual figure.According to official documents there is a deficit of Rs 35 billion in the consolidated account of provincial government.As per rules of the finance department all checks must be drawn before the end of the fiscal year; otherwise these cheques go waste.The finance department sources said this practice of delaying the payment of government employees’ salaries to conceal the actual figures is continuing for the last two years in Punjab.