Hindustan Times ·
Amid DA tussle: Punjab’s per capita ‘employee cost’ highest among major states
A substantial portion of Punjab’s revenues goes into meeting committed liabilities – salaries and wages, pensions, and interest payments – limiting the fiscal space for development spending. In the 2026-27 financial year, committed liabilities of ₹90,335 crore are estimated to consume approximately 72% of the state government’s revenue receipts of ₹1,26,190 crore
Punjab, which is currently facing a standoff between the state government and its employees and pensioners over the payment of dearness allowance (DA) arrears, carries one of the heaviest employee-related expenditure burdens among the major states in the country.
The per capita salary expenditure of Punjab was among the 18 major states at approximately ₹11,000. It was followed by Tamil Nadu, Kerala, Maharashtra and Andhra Pradesh, where the per capita salary expenditure ranges between ₹11,000 and ₹10,000 in 2023-24, while Bihar’s per capita spending on employee salaries was only ₹4,500, according to estimates available in the 16th Finance Commission report.