Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!
Honourable Finance Minister Shri.Arun Jaitely had spoken about the possible impact of 7th CPC recommedations in Parliament.
The Speech is critically reviewed by Comrade Elangovan of DREU.
I am reproducting the comments of Comrade Elangovan for the consideration of our members:
7TH CPC WILL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15%.
SHOULD WE ACCEPT?
R.ELANGOVAN,
WORKING PRESIDENT, DREU
1. The Medium Term Expenditure Framework statement has not yet been uploaded in Finance Ministry’s website.
However I have taken the figures provided by print media including The Hindu.
As per their statement the expenditure on salaries will rise by 9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over the normal estimated expenditure in the 2015-16 budget to Rs.100619 crores. This means that the expenditure projected was Rs.91,839 cr which if increased by 9.56% becomes Rs.100619 crores.
2. While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.
3. As per the estimated strength and provision there of statement laid as part of finance budget,the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr.The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.
4. The increase proposed is Rs.100619 cr from Rs.91,839 cr which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16.Therefore the whole increase is on basic pay in this fiscal.
5. As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only.The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc.The projection for 2017-18 is 1,16,000 cr.
6. If 40% of Basic Pay is to be given,the increase of expenditure in the fiscal 2015-16 must be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay. So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given.
As The Terms Of Reference of 7TH CPC directs them to recommend only what is ‘FEASIBLE AND DESIRABLE’ to the Government.Now the Government In Parliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.? Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years. Are We To Accept?
7. Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.
8. I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.
9. The impact of 6th CPC on expenditure as per estimated strength of establishment and provision there of in respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr. For three years mostly on Pay and DA regular PAY Increase per annum: Rs 8685 cr. These are actual figures.The 219% ofRs. 8685 cris Rs.19000 cr. EVEN THIS IS NOT GIVEN.
10.We must issue a warning to the government afresh demanding acceptance of our demand.I recall my earlier note where in I had quoted Bibek Debroy’s report that the 7th CPC will not be that destabilising to the Government as that of 6th CPC. GOVERNMENT PROVES THAT.
Source: postalpensioners.blogspot.in/
Rohit Thakwani
The calculation is wrong. He has just assumed two components in the salary i.e. DA and basic pay. Whereas it should include HRA, TA, child care allowance, etc. Only when the actual breakup is known, increment can be calculated! Also, you have to note that on increase in basic pay, HRA also increases. So the increase will have to take care of that too.
One doubt I have is that if DA is 125% (projected as on 1 jan 2016), wouldnt the basic pay be less than the DA? As per article, if DA is 31,108 crores, shouldnt the basic be less than the DA because DA is 125%?
Also, some info is given wrong in the article. The outgo would rise to Rs. 1,16,000 crore in 2016-17 and further to over Rs. 1,28,000 crore in 2017-18 with the implementation of the recommendations of the commission, the framework projected. I have taken this part from The Hindu itself!
Primary objective of introduction of Pay Commission is not being considered. Instead Members of Parliament – even if he gets elected once (eligibility criteria for contesting elections is only minimum age – no upper age limit, no educational qualifications, no technical qualifications, no written examination etc, Minister of Health doesn’t know neither the ingredients of a tablet not about diseases, anatomy etc, Minister of Law – need not know about what a law is instead he/she normally involves in lot of crimes etc) are eligible for salary, security, quarters, allowances, pension and lot of other amenities. From independence till today data about how many security guards have lost their lives for the sake of corrupt/criminal politicians, how much salary is being spent for these MPs and MLAs. Above all without any reason and just for the sake of power and political vengeance their acts will result in conducting midterm elections, wasting of time of both the houses without allowing the houses to conduct etc. It is pertinent here to discuss the above issue because these so called politicians are very much interested in the expenditure of the country which is being spent to meet the hike in the salaries of the government servants @ who get the jobs after fulfilling all the eligibility criteria and laid down procedures and who serve the nation with dedication and some of the Group ‘D’ staff (lower level employees) sacrifice their lives just for the sake of few bucks. Politicians have using their criminal brains and trying to put all hindrances at each and every stage and in all forms eg., in the pay commission etc. Earlier there was a mention of PRIVATISATION (wherein most of the jobs/tasks would have handed over to the private owners who spend huge amounts of money (in the form of election funds,campaign, advertisements, booth capturing etc). However now-a-days a new terminology has been introduced which is not known and identified by many experts and intellectuals which has lot of bad cascading effects on EMPLOYEES, GOVERNMENT, WORK, DEVELOPMENT. Private PROJECT participation. In this method only those works will be allotted to the private owners unlike privatisation where while allotting the works they would not have seen the cream and huge profits, but here only those works where BULK PROJECTS WILL BE ALLOTTED TO PRIVATE INDIVIDUALS wherein they will invest huge amounts in CREAM WORKS (without much hardship) and will get HUGE PROFITS within short period of time. IF THEY THINK THAT IT IS NOT WORTH TO INCREASE THE SALARIES OF THE GOVERNMENT SERVANTS (MOST OF WHOM ARE DEDICATED AND WHO WORK FOR THE WELFARE OF THE COUNTRY, DEVELOPMENT ETC) THEN IT IS ALSO INTRODUCE HUGE REFORMS IN THE LEGISLATURE ALSO. Is legislature required for the country? (IAS) Administrative services (who are intellectuals, most of whom are IITs, IIMs, etc with immense knowledge in various fields) and judiciary (only two) only are sufficient. IAS could manage entire country and that too without much CORRUPTION, FAVOURISM, NEPOTISM. The least corrupt politician (leaving behind most corrupt politician) is worst than most corrupt administrator (Huge corruption is there in political circles and less corruption in administrative officers. If the wealth/assets of only the politicians of any one state are considered then it can serve the budget of entire nation for some decades. So how come these corrupt politicians come in between and do not CONDUCT FAIR ANALYSIS. Privatisation and private owners are after only A FEW TASKS WHERE PROFITS ARE INVOLVED AND NOT IN MEAN DUTIES LIKE GANGMAN, KHALASIS, ALPs, workers involved in sanitary works, safaiwala works, drainage works etc who sacrifice their lives just for the sake of few bucks for the family to lead which will not be sufficient enough to lead a happy life but just they will lead a normal life. WHY ALL the above aspects and which are not mentioned but worth to be mentioned are not being considered but WHY ONLY the aspects related to a few escapist employees are considered at the time of wage revision. Instead it would be appreciated if the rules be implemented and measures to be taken to check the long absenteeism, escapism, lethargic workers, measures to be formulated and implemented, with a scientific, systematic, strategic approach for improving the skills, interest in work culture, commitment to duties, training facilities, DEVELOPMENT ON LARGE SCALE, RAPID GROWTH IN INTRODUCING FOUR WAY / SIX WAY RAILWAY LANES/TRACK IN THE COUNTRY, INCREASE IN THE RAILWAY LINES (KILOMETER-AGE) ETC which gives profits and revenues instead of handing over entire railways to PRIVATE OWNERS. IT IS ESSENTIAL HERE TO MENTION THAT IT IS SHAME ON THE PART OF OUR POLITICAL LEADERS/ ECONOMISTS/THINKERS ETC THAT THE LENGTH AND BREADTH OF THE RAILWAY LINES AND TRACKS BEFORE INDEPENDENCE (BY FOREIGNERS) AND THE ACHIEVEMENT BY OUR EXPERTS AFTER INDEPENDENCE (WHEREIN it is easy to increase and improve the technology and the services, but the result is quite opposite and is SHAME FOR EVERY CITIZEN OF INDIA. There are lot of aspects which are to be considered for wage revision. Government will not provide infrastructural facilities, basic facilities, work environment, worst facilities in workshops/worst equipments/machines/tools/technical expertise/technical skills (by all means legally and illegally etc. when compared to the private organizations which provide all the facilities initially including HUGE SALARIES then they will go for profits and talk about the development etc. Here, government organizations lack each and every resources etc but then too so many employees today are STRIVING HARD AND DOING LOT EXTRA HOURS OF WORK FOR THE SAKE OF DEVELOPMENT, IMPROVEMENT ETC. But then too political leaders who DO NOT HAVE BASIC KNOWLEDGE OF WHAT THE GOVERNMENT EMPLOYEES ARE DOING, THEIR CONTRIBUTION, THEIR SKILLS, THEIR DEDICATION, SACRIFICE ETC. are making all statements in the MEDIA and hurting the employees very much. It is the time to make these aspects this go on air and publish in all kinds of media.
This is a small and simple things discussed above. There are so many other aspects to be explained to the public and which has to be known or brought to the notice of the politicians and so called great leaders/economists/reformers etc.