Pune Cantonment Board Faces Salary Crisis as Central Funds Dwindle
In a stark revelation of financial distress, around 1,000 employees of the Pune Cantonment Board (PCB) have been left without their salaries for the month of January. This delay underscores a precarious financial situation stemming from a critical shortage of central government grants.
Official Confirmation and Ministry Appeals
Vidyadhar Pawar, the Chief Executive Officer of PCB, confirmed the salary holdup in a statement to TOI. He disclosed that the board has formally approached the Ministry of Defence through the Directorate General of Defence Estates, seeking urgent grants to cover employee payments.
"We initiated necessary correspondence with the ministry to secure funds for salary disbursement," Pawar explained. "Our basic monthly operational requirement stands at nearly Rs 10 crore, allocated for essential services like electricity, water supply, and sanitation. The current fund shortage has directly impacted our ability to process January salaries."
Root Causes of Financial Decline
The board's financial woes are not new. Officials trace the decline back to the abolition of the Local Body Tax (LBT), which was a primary revenue source until it was replaced by the Goods and Services Tax (GST).
"For several years, we have been persistently demanding our rightful share of GST from both state and central governments, but to no avail," a PCB official lamented. The board received a grant of Rs 19.8 crore last year, which was deemed insufficient to sustain long-term operations.
Another official highlighted the board's complete dependency on defence ministry grants, stating, "There are no independent revenue generation avenues left for us. We are entirely reliant on these central allocations."
Employee Impact and Historical Contrast
Employees, primarily from group C and D categories along with contract workers, expressed frustration over the delay. Typically, salaries are disbursed on the last or first day of the month, but this time, there was no prior communication.
"This unexpected delay severely disrupts our monthly financial planning and expenses," shared an anonymous employee.
A senior PCB official painted a grim contrast with the past, recalling, "During the LBT era, the board maintained fixed deposits exceeding Rs 100 crore. Roads were well-kept, and civic services were top-notch. Over the past decade, those reserves have been completely exhausted, leaving the board in an extremely dire state."
Restoring financial stability, according to officials, hinges on receiving a regular GST share, which could potentially alleviate the ongoing crisis and ensure timely salary payments in the future.
