Ashwani Mahajan Friday September, 5 2008
Source: The Pioneer
The Union Government has approved the recommendations of the Sixth Pay Commission, which is sure to make Central Government employees extremely happy. The First Pay Commission was constituted in 1956 as an administrative provision for deciding Government pay scales. Since then the Pay Commission has been constituted after a gap of every 10 years. It not only recommends the pay scales of Central Government employees, armymen etc, but also forms the basis of pay scales for State Government employees and employees of educational, health and other institutions working with the assistance of the Centre and the States.
This time around the Government has increased the pay scale of armymen. In fact, it has gone a step further and improved upon the recommendations of the Pay Commission, thus making the defence services more attractive. On the other hand, the improvement in the pay scales of teachers, doctors, researchers, etc, was necessitated to retain them in Government service and keep them away from the lure of the private sector.
Though it is being said that adopting the recommendations will benefit 50 lakh Union Government employees, there will be an additional burden of Rs 18,000 crores on the Government. But if we take into account the effect of the Pay Commission's recommendations on the State Governments, the burden on the public exchequer will be far greater.
In the last few years increase in money supply has broken all records. As of March 31, 2005, currency held with the public was Rs 3,55,663 crores. This increased to Rs 6,02,706 crores by May 31, 2008. This amounts to an increase of 70 per cent in just three years and two months. Keeping in view the large-scale impact of the Sixth Pay Commission recommendations on the exchequer and thus on money supply, inflation is likely to worsen.
The poor financial condition of the States is no secret. Apart from a few States, most are on the verge of bankruptcy. A few States have not been able to implement even the Fifth Pay Commission's recommendations.
At a time when the Government is finding it difficult to control rising inflation, the Sixth Pay Commission will undoubtedly multiply the problems of the common man.
Sir,
I do not believe the pay should have been increased for class-I officers in the civil services and the armed forces. The real salary (which would include in-kind benefits such as subsidsed housing, travel, house-helps and the like) already is comparable to those of the private sector, even with the 5th pay comission's recommendations.
Siddharth,
PGDAV College.