PM’s Economic Advisory Council recommends Pay arrears to be given in phased manner
Written by Administrator on May 28th, 2008Prime Minister’s Economic Advisory Council wants the government to pay its employees in phased manner and deposit part of the estimated arrear of 18,000 crore in their Provident Fund while implementing the Sixth Pay panel report to minimise its impact on inflation.
"Since the payment of arrears in cash could result in marginal rise in inflation rate due to spurt in demand for various products, EAC has said that government should consider depositing part of the arrears due to employees in provident fund and pay the remaining amount in a phased manner," official sources said.
The council headed by noted economist and former Reserve Bank Governor C Rangarajan, is of the opinion that the payment of arrears in one go could result in further rise in prices, especially of manufactured goods and consumer products.
"The government had paid the arrears in a phased manner while implementing the report of previous Pay Commissions, so it can consider it again," Rangarajan had earlier said.
The council, which advises Prime Minister Manmohan Singh on important economic matters, had earlier said the inflation rate could come down to 5 to 5.5 per cent after about four months following good monsoon and measures taken by the government.
Inflation, however, has already crossed 8 per cent mark, and the analysts fear that it could soon touch 10 per cent mark if the hike in international crude oil prices is partly passed on to the consumers.
The Sixth Pay Commission headed by Justice B N Srikrishna, which submitted its report in March, has recommended an average 28 per cent hike in salaries of about 40 lakh central government employees with effect from January 1, 2006.
It estimated that hike in salaries would cost about Rs 12,000 crore annually, while the payment of arrears would put an additional one time burden of Rs 18,060 crore to the exchequer.
The Union Cabinet, which considered the pay panel report last month, forwarded it to a committee of Secretaries headed by Cabinet Secretary K M Chandershekhar, following protest by sections of government employees who are not happy with the recommendations.
May 29th, 2008 at 11:00 am
This is regarding payment of Pay arrears and exp proposed to be incurred by Govt. and the advise given to P M by former Governer of Reserve Bank Mr C Rangarajan. In this regard I would like to sasy that the Govt has obolished 42% of Central Staff and has saved Funds from this. The hike in the salary of Central Staff is much less than the savings savings of 42% staff cut. The Sixth Pay Commission has not rcommended the due wages for the Central Staff as expected.
The Govt can pay the arrears at a time as much funds have been accomulated by cutting the staff strength.
May 29th, 2008 at 11:07 am
It is a nice decision. Government should amicably resolve the issue of annomalies in SPC and effect the same within a shortest period.
May 29th, 2008 at 11:33 am
It is total maladministration and misgovernance. How one shoudl not run government – take lessons from indian government. there are more number of employees than actually required. Now when the private employment opportunities are on the rise, govt. should find ways to ensure exit of employees instead of paying them for doing nothing.
May 29th, 2008 at 11:50 pm
Government must cut the taxesand duties on petroleum products to come down the inflation. Govt. must also impose cut in usage of govt vehicles for personal purposes. One airconditioned bus may be plied for all the MP’s from MPs’ quarters to Parliament during Parliament sessions. Long time back, one Hon’ble MP suggested that one bus may plied to the Parliament, in view of increasing no. of Former PM’s residing in Delhi. The same principle may be applied every time to reduce wastful usage.
May 30th, 2008 at 6:18 pm
For out siders looking at the government servents got a feeling that government servents are doing hardly any work. I strongly differ with this view and few reasons are given below:
i)Government servents are the executives to implement the policies economically following the guide lines, codes, mannual and further instructions issued from time to time.
ii) Follow certain administrative instructions of higher officials in the intrest of the larger public that may not be possible to explain to the outsiders which may looks to them irrevalent.
iii) In many instancess the required data has to be workedout/collected and compailed and submitted to the higher authorities before leaving the office.
iv)many times crusial decesions to be taken to despose the matters which involves many financial implications which will be questioned at a latter date by which time the urgency under which the decision was taken losses the importance and being subjected to DAR action.
v) In a private sector full powers are being given to take the decisions as such the policies can be implimented very quickly and the ill effects of these decisions will not affect the public at large and if required can be reversed also very quickly.
vi) I therefore appeal to one and all to have a proper perspective to critise the governmnta officials.
vii) The government officials need to be paid sufficent to meet their expences like any other citzen (may be a person working in a private concern, a business person, an industrilist etc.)
viii) If a government official is paid enough I strongly feel that the official will be fully motivated and dedicated to discharge the justified duties timely and effectively without looking for other avenues of earning.
ix) In case government feels the integrity is doubtfull , the official should be advised immediately in oerson and be shiftted from the sensitive posts and simultaneously order an independent inquiry to assertain the realities.
x) The so called CBI raids should be preventive in nature and needs to be at all levels .
xi) A mechnism needs to be evolved to minimise the circulation of money incurrency form to each and evry individual and be accounted so as to bring down the evil of unaccounted money being spent at high places, parties ,restaraunts, bars, while in travel and at many more places.
xii) Each and ever person should pay their due taxes promptly to the government .
xiii)The government employees should be paid with out deduction of any taxes and say that will be their salary/perks in what everfashion be called.
There are many more things never ending to point out.
The above comments are in relation to 6th CPC.
June 3rd, 2008 at 3:21 pm
subsidy on petrol should be immediately stopped and should be free from govt price control.
June 3rd, 2008 at 10:23 pm
There is no transparency, audit, estimation and assesment in the deals being made. The quality of the products and services are not upto the mark compared to the amount spent. Most of the top shots make lot of money under the table. This all happens because of untruthfulness and greed.
The Govt should come out with suitable pay structure in line with private sector and should be strict in accountability of these officers.
December 26th, 2008 at 2:32 pm
On promotion of an officer from the post of Dy.Director (Scale S-21) on 27-8-08, drawing basic Pay of Rs 15,750 to the post of Director (Scale S-24) opting for his pay fixation from 1-1-2006; his pay is fixed to the minimum of Director’s Scale at Rs 46,100 (including G.P.) as against a Dy Director drawing basic Pay of Rs 13,875/ of 6 years lesser experince, his pay too,on promotion to the post of Director on the same day, his pay also gets fixed at minimum of Director’s Scale i.e. at Rs 46,100 (including G.P) meaning thereby that Senior Promotee of 6 years higher experince belonging to the same category & services; the Senior officer losses benefits of his 6 years service ie. 6 Annual increaments. This is very much disadvantageous & discouraging to senior officer, if he is not given the benefit of provisions of stepping up pay effect to his junior, which office is refusing. If I opt pay fixation from date of promotion (27-8-08) then my basic pay is protected but I loose areears of 32 months meaning thereby that implementation of 6th CPC for me is from 27-8-08 as against all others who have drawn their arrears w.e.f 1-1-06