The finance ministry on Saturday denied that the government will not be able to pay salary to its employees for February 2005.

"It is categorically denied that the central government will not be able to pay salaries to its employees. Adequate funds are available to meet all liabilities of the central government, including payment of salaries and wages to its employees," an official release said.

The response came following a report on Friday saying government was facing a shortfall of Rs 500 crore (Rs 5 billion) and central government employees may not get salaries in time.

Reacting to the report, expenditure secretary D Swarup said: "Rs 500 crore is nothing for the government. There is absolutely no problem in not only paying salaries but meeting all the liabilities of the government."

Swarup did not comment on whether there was a shortfall or not. He, however, asserted that the central government employees with get their salary for February in time.