The state will have to shell out Rs 14,000 crore on account of arrears. Unlike the Centre, the state government, however, may not pay the arrears in cash but deposit it in the provident fund account of the employees.

The decision will benefit over 16 lakh state employees and 5.5 lakh pensioners. It will entail a recurring annual expenditure of Rs 5,189 crore, which includes Rs 3,789 crore on salaries and Rs 1,400 crore on pension.

Making the announcement after a cabinet decision, Chief Minister Mayawati said: “I know that the Centre will never provide us with any assistance, yet we have decided to give the benefit of the Sixth Pay Commission to the state employees from the limited resources of the state government despite escalating inflation.”

The burden on the state exchequer will affect the funding of welfare and development schemes. But the chief minister assured that steps would be taken to keep the situation under control.

As an immediate measure, the government has decided to cut down on non-plan expenditure by five per cent. Also effective measures will be taken to check tax evasion and additional resources will be mobilised

Mayawati praised the Congress-led UPA government at the Centre for implementing the report of the pay commission. But, she said it should have been submitted much earlier to provide relief to the employees reeling under inflation.

At the same time, she lambasted the Centre for its refusal to sanction a special package of Rs 80,000 crore to UP.

Despite the Centre’s discriminatory attitude, her government, she said, will pursue policies for the welfare of the “sarvajan”.