Dehradun: The Uttarakhand economy is in a dismal situation as the state exchequer is not sufficient to pay salary to the government employees on time. More so, the state government has to take loans from market to pay salaries.

According to sources, the Uttarakhand government needs more than Rs 215 crore for paying monthly salaries to its employees.

At present, the state government has to pay back the loans and interests to various agencies which are adding burden to the exchequer.

Earlier, toeing the line of the Central government, Uttarakhand had announced 8 percent dearness allowance (DA) to its employees effective from 2011.

However, the state government has not provided the increased DA allowance to its employee till date, which is being attributed to its poor economic situation.

The Finance Secretary in-charge, Hemlata Dhaundhiyal said, “DA installments will be soon paid to the employees.”