Open Forum
New
Delhi, 26 February 2016
Budget & 7th Pay Panel
WILL BABUS GET A BONANZA?
By Vinod Sharma
Expectations among our bureaucracy
are at an all time high vis-à-vis the
presentation of the general Budget on 29 February. The day, when Union Finance
Minister Arun Jaitley is expected to announce a budgetary provision of Rs 1.11
lakh crores for implementation of the 7th Pay Commission Report
recommendations and the One Rank One Pension (OROP) scheme which is being
considered by the Empowered Committee of the Secretaries before the final nod
by the Cabinet.
Recall, unlike the 6th Commission
set-up in July 2006 which was implemented only in 2008, the erstwhile UPA Government
constituted the 7th four-Member Panel headed by Justice (retd) A K
Mathur in February 2014 to encash it in the May general elections.
But the report, submitted in August
2015 only saw light in December last, perhaps to allow the NDA Government make
alterations/deletions due to the OROP announcement along-with keeping it within
budgetary constraints.
Pertinently, since Independence a pay commission is set up every
10 years to review and recommend the work and pay structure of the civil and
military workforce of the Central Government.
In keeping with the practice the 7th
Report recommended a 23.55 per cent increase in salary, allowances and pension
to benefit approximately 47 lakh employees and 52 lakh pensioners totalling an
additional outgo of Rs 1.02 lakh crores every year.
True, this amounts to merely a
little over 2 per cent growth annually in pay and allowances of an average Central
Government employee, who is facing rising inflation, less promotional avenues,
tough working conditions and having to compete with hefty pay packets in the
private sector thanks to due globalization.
Undeniably, the financial impact of
the 7th Pay Commission is staggering for the Central and State
Governments. Already, post implementation of the 5th and 6th
Commission, the Centre’s annual wage bill crossed a whopping Rs 10,000 crores
and Rs 8,000 crores respectively. Thereby, breaking the back of India’s
developing economy with many States unable to pay staff salaries.
Arguably, the impact of a further
increase in salaries and allowances, even if it is a moderate 23 per cent, will
impose an additional wage bill of Rs 1.2 lakh crores on the Centre alone.
It remains to be seen how the Government
will square this bonanza with the commitment to eliminate revenue and fiscal
deficits to make the economy flourish. As it stands, Jaitley has proposed to lower
the fiscal deficit at 3.5% of the GDP and 3% in the2016-2017 budget from the
present 4.1%.
According to experts, the Budget
outlay for implementation of the pay panel and OROP would account for 0.5% of
the GDP. But the additional financial burden on States would be more staggering.
This would force inordinate delay in States implementing the pay panel’s report
on the pattern of the Central Government.
Therefore, in the pre-Budget
consultations with the Finance Minister, his State counterparts have strongly
pitched for additional grants to square up the burden.
Notably, as statistics show the
Union Government’s total workforce is around 47 lakhs, of which over 30 lakhs
are in two major sectors, Railways and Defence. The rest are scattered in over
500 Ministries and Departments across the country.
Moreover, both Railways and Defence
employees’ services are not only of paramount important but also indispensable
as Railways is the backbone of the national economy, besides being the biggest
revenue earner for the Government.
Similarly, defence personnel posted mostly
in trouble-torn and tough areas are guarding the country’s borders and their
valuable services cannot be weighed in terms of financial benefits extended to
them. Not only do they work under immense stress and in highly trying climatic
conditions whereby any amount of money to them would be justified. The recent
martyrdom of 10 soldiers in Siachen speaks volumes about their valour in safeguarding
our borders.
Besides, national security is not negotiable.
Hence, the country would not be losing anything while increasing pay packets of
defence employees. Instead, it would immensely add to their morale, efficiency
and devotion to duty.
The general assumption that Government
employees are handsomely paid and under-worked is untenable. Like the private
sector, an average employee is equally devoted to his duty and is also prone to
the practice of hire and fire.
However, unlike his counterparts in the
private sector, a Government employee is poorly paid despite six pay
commissions. With the introduction of the annual work appraisal scheme and
several other performance-oriented reviews, a Government employee has no other
option but to work, and, as he could lose the so-called job security.
Additionally, he is subjected to
more stringent official rules and regulations. His earning from salary and
other allowances is taxed at source, even as the Government fails to realize
huge taxes from lakhs of big-wigs in the private sector.
Since all Government offices have
introduced the biometric attendance system and with the Right to Information
Act in force, the working of ‘babus’
has become more transparent and accountable. Still there is always room for
administrative reforms from the top echelons of our bureaucracy; otherwise
people will continue to believe that their hard-earned money is being
squandered on non-responsive babus.
There is no gainsaying, corruption
and dilly-dallying tactics in Government offices must be dealt with sternly so
as to make the bureaucrats fully accountable to the needs and requirements of
the common masses.
Clearly, there is an urgent need to
generate additional funds from sources hitherto unexploited and untapped and by
checking wasteful expenditures on pompous shows, luxurious foreign trips of
Government employees by making sure that every penny earmarked for development
is properly utilized and not squandered by unscrupulous elements in the Government
and private sector. It is hoped that Government employees will get their due in
the ensuing budget. ----- INFA
(Copyright,
India News and Feature Alliance)
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