Despite revenue drop, Gujarat govt to pay full salary: Patel

Despite a massive fall in revenue during the coronavirus lockdown since March 25, the Gujarat government has decided to pay full salary to all its employees and pension for the month of April. A sum of Rs 4,000 crore has been earmarked to pay salary and pension, said Deputy Chief Minister Nitin Patel, who handles the fiance portfolio.

Ahmedabad The Gujarat government on Thursday said its income has dropped drastically due to the lockdown imposed over a month ago to contain coronavirus, but it will pay full salary to its employees and also pension for the month of April.

A sum of Rs 4,000 crore has been earmarked to pay salary and pension, said Deputy Chief Minister Nitin Patel, who handles the finance portfolio.

The lockdown, imposed on March 25, has severely hit businesses in Gujarat, one of the most industrialised states in the country.

"Since a majority of businesses and industries are shut due to the lockdown, we are witnessing a huge dip in the income of the state.

Our income from Goods and Service Tax has more or less stopped. Same is the case with our income from petrol and diesel (value-added tax)," said Patel.

But this not will affect disbursal of the salary of government employees and pension of retired staffers, he said.

"Though there is a huge dip in our revenues, we have decided to pay a full salary for the month of April to our 5.28 lakh state government employees.

Similarly, the full pension will be paid to 4.57 lakh retired employees. This is being made possible because of our efficient (financial) management," said Patel.

In total, the state would be spending Rs 2,600 crore towards salary and Rs 1,400 crore for pension for April, he said.

Patel said the decision to earmark Rs 4,000 crore towards one month's salary and pension was taken on Thursday during a high-level meet. (PTI)