RCB grapples with rising expenses

Employee salary delays become routine, compounding crisis

RAWALPINDI:

The Rawalpindi Cantonment Board (RCB) is grappling with financial challenges as its monthly expenses have soared beyond Rs280 million, while revenue recovery remains insufficient to meet these costs. According to sources, salary and pension payments alone account for Rs210 million per month, with an additional Rs70 million required for Petroleum, Oil, and Lubricants (POL), utility bills, vehicle maintenance, workshops, and store items.

The mounting financial burden has led to consistent delays in salary payments over the past few months, causing hardships for employees.

The board's revenue streams include property tax, property transfer tax, commercialisation fees, building plan fees, water recovery charges, and fees for issuing death, birth, and marriage certificates.

However, tax net expansion has been stagnant, and outstanding tax recoveries, now exceeding Rs1 billion, have been classified as bad debts.

A significant portion of these arrears is tied up in court cases, while the board is focusing on recovering the remaining dues.

Despite these efforts, no major revenue-generating projects have been initiated in recent years to bolster the board's assets and income.

Several affected employees expressed their frustrations, stating that the delay in receiving their January salaries has left them struggling to meet essential expenses.

"We've been forced to take loans for months due to salary delays, and now even borrowing is no longer an option," one employee remarked, adding that they cannot pay overdue utility bills or purchase basic household items.

When contacted, Assistant Secretary and Cantonment Board spokesperson Rasheed Saqib assured that all pending salaries would be paid within two to three days.

He attributed the delay to lower-than-expected tax recovery in November and December while highlighting ongoing expenditures on public services such as water supply, street lighting, maintenance, and repair work.

He also mentioned that work is underway on the underground cabling project in Saddar, alongside other initiatives across the cantonment.

The spokesperson expressed optimism that the board would soon achieve better financial discipline, prioritising a reduction in unnecessary expenditures and an increase in revenue streams. In response to the ongoing financial difficulties, the RCB has started exploring alternative revenue generation strategies.

These include enhancing tax recovery efforts, focusing on reducing the number of pending court cases, and launching new projects aimed at boosting local businesses. However, officials emphasised that such measures would take time to yield significant results.

Meanwhile, employees are anxiously awaiting the timely release of salaries, as the delayed payments continue to impact their daily lives. The board remains committed to addressing these financial challenges, but experts warn that urgent steps need to be taken to ensure long-term financial stability.