Allowances Committee Report and Financial Expenditure

Allowances Committee Report and Financial Expenditure

Comrades,
The Central Government Civilian Employees numbering around 36 lakhs employees and Defence forces numbering around 15 lakhs are waiting for a long period for the allowances committee to submit its report and almost 10 months have passed , the allowances committee has not submitted its report so far , the patience of the Central Government Employees is almost over , the main demand of the CG employees is house rent allowance , the expenditure towards the HRA is just at 4.15 % of the total expenditure , the breakup of pay and allowances is pay including DA constitute about 80% and all allowances together constitute around 20% of the total expenditure, even if the 7th CPC recommendations are accepted the HRA expenditure shall be at just 9% of the total expenditure, even if the staff side demands of the HRA is accepted the total expenditure shall not cross 10%, let us examine the following facts.

The total expenditure towards pay & allowances for 36 lakhs Central Government employees for the year 2015-16 is Rs 1,50,028.57 ( in crore) , Out of the total expenditure of 1,50,028.57 crore, the percentage expenditure on Pay, Dearness Allowance (DA), House Rent Allowance (HRA) and other allowances are Pay Rs 55,162.69 crores (36.77%) , DA Rs 64,304.33 crores (42.68%) , allowances constitute Rs 30561.55 crores of which HRA Rs 6,225.14 crores ( 4.15% ) and. Transport Allowance constitute Rs 6186.05 crores and other allowances 16.22% respectively.

Out of the total expenditure of Rs 6,225.14 crore on HRA in 2015-16, the HRA expenditure for X class cities is Rs 2287.80 crore which is around 36.75% of the total expenditure on HRA.

Number of Sanctioned Posts is 36,49,468 and Number in Position is 32,28, 921 vacant posts is 4,20,547 , the Defence forces constitute around 15 lakhs with an Indian Army strength of 11 lakh.

Pay commission views : Para number 16.3
16.3 The increases in allowances relate to the following:
a) House Rent Allowance (HRA): This accounts for the principal increase in the expenditure on allowances since it is calculated as a percentage of the basic pay and the rise in basic pay based on recommendations of the Commission would be reflected as increased HRA. The expenditure on account of HRA is likely to go up from ₹12,400 crore to ₹29,600 crore, an increase of ₹17,200 (138.71%). This figure also includes an expenditure of ₹3,700 crore that is likely to occur on account of the expansion in coverage of HRA benefiting personnel serving in the CAPFs (this figures include all Central Government employees including Defence employees)

Hence the additional expenditure towards allowances will not financially impact the Central Government as already 70% of the 7th CPC expenditure has been borne out by the Government, only additional expenditure of just around 30% that is Rs 30,000 crores has to be met by the Central Government. even if 7th CPC report is fully implemented the expenditure towards pay and allowances shall not exceed 10% of the total revenue We hope the Government understands the sentiments of the Central Government employees and announce the revised allowances immediately after the arrival of the Honorable Finance Minister from his official tour to US and Russia, which he is expected to return from foreign assignments on 27th April 2017.

Comradely yours
(P.S.Prasad)
General Secretary

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