Tuesday, August 19, 2008

6th Pay Commission: UP Govt to implement Sixth Pay Commission report from Dec

UP Govt to implement Sixth Pay Commission report from Dec

Following the Central government’s steps of implementing Sixth Pay Commission’s (SPC) recommendation in September, the Uttar Pradesh Chief Minister Miss Mayawati on Monday (Aug 18) announced to implement the Pay Commission report from Dec 1, 2008. The Central Government on August 14, 2008, had announced to implement the sixth pay panel’s recommendation with slight modifications by September 2008.

The State Commission, headed by former IAS officer Jagmohan Lal Bajaj, which had also submitted the state fifth pay commission’s report a decade ago in his leadership, would submit the report on pay revision by December. After examining the State Commission’s report, the UP government will hike the salary and pensions of around 16 lakh employees and 5.5 lakh pensioners.


Besides UP, Haryana, Tamil Nadu and Chhattisgarh have also announced to revise the salaries of their corresponding state employees very soon after submitting the revision report of respective state commissions, as per sources.


Viewing the forthcoming Lok Sabha Election, Mayawati who has recently expressed her desire to be next PM has quickly responded on Centre’s step of implementing the Sixth Pay Commission’s recommendation by announcing to execute it by December 1, 2008.


Criticising the Central government’s move of not releasing Rs.80,000-crore for UP as a special relief package for reforming the economic stage, Mayawati said, “We know the Centre will not help us and we run the risk of acute fund shortage for taking up development work. Yet, we have decided to go in for salary revision.”


In the view of rising historical inflation that have touched a 13-year high of 12.44%, as per data released from Department of Economic Affairs on August 14, Mayawati has said that this revision of salary will work as a relief rain after storming heat.


According to her announcement, the state employees will also get the arrears similar like Central government employees since January 1, 2008, but those arrears would not paid as cash but would be deposited in the provident fund account while salary increment from December would be given in cash.


This salary revision will be benefited to 8.71 lakh UP government employees, 6.5 lakh teachers and non-teaching staff and 1.1 lakh local bodies' employees, which will put the additional burden of Rs.5,189-crore per annum in terms of salary and Rs.14,775-crore for arrears on the state exchequer.


The wage bill of the state would also be increased including that of pension from existing Rs.21,000 crore to Rs 26,189 crore that will be nearby 8% of the Gross State Domestic Product (GSDP) of estimated amount of 3,91,000 crore.


Commenting over the impact of pay revision, Mayawati said, “By accepting the SPC recommendations, the UP government will be putting a huge strain on its resources, and the rate of implementation of development schemes in the state will be affected.”


However, she was in the favour of implementing the SPC earlier to ease the employees and pensioners from soaring inflation as she said, “If the decision had come earlier, it would have helped the salaried classes who are reeling under the impact of rising inflation.”


At present, Uttar Pradesh is suffering from massive debt of Rs. 1.54-lakh crore for which state is repaying annually Rs. 15,800-crore. However, the rule implementation of Value Added tax has healed the economic infrastructure of the state.


Mayawati has also ensured the state natives by not imposing any additional tax for easing the burden of pay revision.


Besides UP, the Haryana Chief Minister Bhupinder Singh Hooda has also announced to implement the SPC soon on the state. For this, Chief Minister has set up a revision committee to review the Sixth Pay panel report in the leadership of State Chief Secretary Dharam Vir Singh. According to Haryana government’s estimation, the new salary revision would put additional burden on state exchequer of Rs 1,550 crore.


Chief Ministers of Chhattisgarh and Tamil Nadu has also announced to implement the 6th Pay Commission soon in the state, sources said.

Source: http://www.newstrackindia.com

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