The state government had to float development bonds of Rs 700 crore to raise money to pay salaries to government employees after the GST compensation was not disbursed by the Centre.
"We have not been paid GST compensation of Rs 633 crore by the Centre that has led to cash flow problems to the state. It was supposed to be disbursed 15 days ago," state finance minister Manpreet Singh Badal said.
Punjab's monthly employees' salary bill is pegged at Rs 1,800 crore.
The Punjab Civil Secretariat Staff Association yesterday protested against the non-payment of salaries. The employees claimed it was the second time their salaries were delayed under this Congress dispensation.
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The opposition Shiromani Akali Dal slammed the state government for the " total mismanagement of governance".
"If Punjab is blaming the GST system for its fiscal problems, then how other states, which are also under GST system, are able to pay salaries of their employees," SAD spokesman and former minister Daljit Singh Cheema asked.
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