GUWAHATI: As the financial year draws to a close on March 31, government contractors in Assam find themselves in a precarious situation due to pending payments from various government departments. These contractors, who have invested significant capital into completing public projects, are now struggling as their bills remain uncleared. The growing frustration among them is evident, with many expressing their disappointment at the government’s inefficiency in processing dues on time.
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A contractor based in Silchar, speaking to GPlus, shared his ordeal, saying, “I have taken a loan and completed road construction work allotted by the Public Works Department (PWD), but now I am not getting the payment.” He added that PWD has been regularly defaulting on timely payments for the past few years, making it increasingly difficult for contractors to manage their finances.
On March 28 and 29, the PWD head office in Chandmari witnessed an influx of distressed contractors pleading with officials to process their pending payments before the end of the financial year. However, their efforts largely went in vain, as only a few managed to receive partial payments, while many were left empty-handed.
The issue extends beyond PWD, with multiple government departments across Assam failing to clear outstanding dues. A contractor working with the Directorate of Information and Public Relations (DIPR) revealed that he was supposed to receive Rs. 10 crore but had only been paid Rs. 2 crore so far. Similarly, contractors associated with the Housing and Urban Affairs Department have also raised concerns over delayed payments, which are creating financial distress and uncertainty.
When questioned about the delay, a senior PWD (Roads) official, speaking to GPlus on condition of anonymity, disclosed that only 50% of the bills had been cleared by the Finance Department. He assured that the payments for the cleared bills would be made within a month, but those that remained uncleared would have to wait until the next financial year. He admitted that such delays were detrimental to both the contractors and the departments, as pending bills become liabilities that carry forward, further complicating financial planning for the following year.
The official also noted that the upcoming financial year would be a crucial one, given the state’s political landscape. He cautioned that if payments continued to be delayed, contractors would lose motivation, and the quality of government projects might suffer as a result.
A source in the Finance Department shed light on the reason behind the stalled payments, explaining that bill clearance depends on the priority of the project and the availability of funds within a department’s sanctioned budget. If a department lacks sufficient funds, pending bills are pushed to the next financial year, exacerbating the issue.
Adding to the frustration, another contractor alleged that those with close connections to ministers and senior bureaucrats received their payments without hassle, while those who worked diligently without political backing were forced to run from pillar to post for their dues. This has fueled allegations of favoritism and a lack of transparency in the payment process.
The financial strain faced by government contractors is compounded by Assam’s increasing debt burden. Over the past decade, the state’s total debt has surged dramatically from Rs. 2,115 crore in 2011-12 to Rs. 24,118 crore in 2023-24, marking an exponential rise. According to data presented by Finance Minister Ajanta Neog in response to a query by MLA Akhil Gogoi in the State Legislative Assembly, Assam’s debt accumulation has seen a steep increase with occasional fluctuations.
Under the Congress-led government before 2016, the borrowing pattern was inconsistent, with a significant jump of 134% in 2014-15, bringing the total debt to Rs. 6,214 crore. In 2016-17, there was a temporary dip to Rs. 5,649 crore, but borrowing sharply escalated after the BJP assumed power. The debt increased to Rs. 10,477 crore in 2017-18 (an 85% rise from the previous year) and continued climbing to Rs. 14,004 crore in 2018-19 and Rs. 16,634 crore in 2019-20.
While the Assam government claims that the state’s debt-to-GSDP ratio remains lower than that of many other states, data suggests a worrying trend. The debt-to-GSDP percentage has surged from 18% in 2011-12 to 24% in 2023-24, indicating growing financial instability.
Despite government claims of rapid development in the state, the rising debt burden and the distress faced by unpaid contractors cast a shadow over such assertions. The frustration among contractors who have invested their resources and efforts in government projects only to be left struggling for payments raises serious concerns about the government’s financial management. If these payment delays persist, the state risks discouraging contractors from taking up future projects, ultimately hampering infrastructural growth and development.
As the financial year comes to an end, Assam’s government contractors remain in a state of uncertainty, hoping that their long-pending dues will finally be cleared. Until then, the growing dissatisfaction among them continues to pose a significant challenge for the administration.
