"The pay commission award is from Januray 1. 2016 but it is likely to be implemented from next years and employees paid arrears. By the time it is implemented, it goes into next financial year and our growth prospects are good, our economy is pretty robust"
The Revenue Secretary Shri Hasmukh Adhia & Finance Secretary Shri Ratan Watal statements also indicate that the Government sought to show healthier finances and the Central Government should accept the Staff side demands regarding minimum wage, fitment formula & allowances.
If the Government is serious about revenue collection then it can collect about 2.5 lakhs crores of pending tax dispute amount of more than 5 lakhs crores, this will benefit the tax payer and the Government servant as well.
There is no case for extension of time limit for extension of the 7th CPC implementation to next year. This report will be implemented in May or June 2016.
· The DA amount increase is on basic pay only and also Transport allowance is increasing .
· The wage hike annually is around 15% .
· The numbers of retired persons are more in the last 5 years compared to new recruiters. Even the vast difference between the wages of new person joining the Central Govt and retired person.
· The 7th CPC has abolished many allowances, which is not reflected in the actual impact on hike.
· The difference between the actual wage hike as indicated in the 7th CPC and the website of Government of India Ministry of Finance Department of Expenditure Pay Research Unit for Brochure on Pay and Allowances of Central Government Civilian Employees.
· The difference between the actual wage hike as indicated in the 7th CPC and the Finance Minster statement on the floor of the House on the Medium term Expenditure Framework Statement laid before Parliament during August, 2015.
· PAY RESEARCH UNIT DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI brings out a report on pay and allowances of Central Government civilian employees on an annual basis which include the Ministry of Railways, Ministry of Home Affairs, Department of Posts, Ministry of Defence (Civil), UNION TERRITORY and other 100 departments. According to them the REGULAR CIVILIAN EMPLOYEES IN CENTRAL GOVERNMENT AND UNION TERRITORY ADMINISTRATIONS AS ON 1.3.2013 is 31,80,608 persons.
The 7th CPC in its report vide para no 16.1 has indicated that the total expenditure for the year 2016-17 towards Central Government Employees including, Civilians, Railways , Defence personnel, Ministry of Home, Department of Post etc before implementation of the 7th CPC report as Rs 4,33, 500.00 crores which include Pay of Rs 2,44,300.00 Crores , Allowances which include HRA Rs 12,400.00 crores, other Allowances Rs 24300.00 crores, Pension Rs 142600.00 crores.
· Expect HRA no other allowances has increased, HRA has increased by just 106% over the existing amount.
Majority of the Central Govt Employees don’t avail HRA and many employees reside in “C” class city. . Indian defence personnel including Army personal stay in the military camp .
The salary and allowance expenditure or the year 2013-14 is Of the total expenditure on pay and allowances of Rs 1,27,000 crore for the financial year 2013-14. Which include the Ministry of Railways, Ministry of Home Affairs, Department of Posts, Ministry of Defence (Civil), UNION TERRITORY and other 100 departments as per the PAY RESEARCH UNIT DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI expenditure statement for the year 2013-14.
Add 14% increase in wage hike on 2.75 lakh crore for serving employees and 20% hike for pensioners . Add HRA amount Rs 13,000/- crores .Which works out to Rs 60,000/- crores increase not one lakhs crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 40,000/- crores.
Press Information Bureau Government of India Ministry of Finance statement .
DA increase for 50 lakhs employees is Rs. 6655.14 crores per annum * 12/ 8 = Rs 9982 crores for 6% increase in DA, for 14% wage hike it is 9982*14/6 = Rs 23292 crores.
DA increase for 55 lakhs employees is Rs. 4436.76 crores per annum * 12/ 8 = Rs 6655crores for 6% increase in DA, for 14% wage hike it is *14/6 = Rs15528 crores.
Multiply by 50lakhs CEG employees including Defence employees , Railways , Home, Postal etc. it works out to Rs 2.25 lakhs crores. So total expenditure on salary as on 1/1/2016 is at RS 2.25 lakhs crores. Add pension amount of Rs 1 lakh crores hence total expenditure is at Rs 3.25 lakh cores .
Add 14% increase in wage hike on 1.75 lakh crore for serving employees and 20% hike for pensioners . Add HRA amount Rs 13,000/- crores. Which works out to Rs 60,000/- crores increase not one lakh crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 40,000/- crores.
Total Expenditure on salary and allowances including pension amount is 3,09,000 crores.
Add 14% increase in wage hike on 2.20 lakh crore for serving employees and 20% hike for pensioners Add HRA amount Rs 13,000/- crores . Which works out to Rs 61,000/- crores increase not one lakh crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 45,000/- crores.
Hence the net increase in salary and pension is just around Rs 40,000/- crores not Rs one lakhs crores as stated in the 7th CPC out of which 15,000/ crores is for Defence employees, Rs 15,000 crores by the Railway's . The 7th CPC projections of 5.5 lakhs cores expenditure is also wrong.
The 7th CPC recommendation's impact need not give jitters to the government because the rise in government wages will amount to only 0.4 per cent of GDP.
Our Finance Minister need to tought lession on BUDGET-2016=2017. alternativly STIKE MODE.