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BHARATHIYAR UNIVERSITY DDE M.Ed., 2014-15 APPLICATION & PROSPECTUs
Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!
Honourable Finance Minister Shri.Arun Jaitely
had spoken about the possible impact of 7th CPC recommendations in
Parliament. The Speech is critically reviewed by Comrade Elangovan of
DREU. I am reproducing the comments of Comrade Elangovan for the
consideration of our members:
7TH CPC WIL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15%.
SHOULD WE ACCEPT?
R.ELANGOVAN,
WORKING PRESIDENT, DREU
1. The Medium Term Expenditure Framework
statement has not yet been uploaded in Finance Ministry’s website.
However I have taken the figures provided by print media including The
Hindu. As per their statement the expenditure on salaries will rise by
9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over
the normal estimated expenditure in the 2015-16 budget to Rs.100619
crores. This means that the expenditure projected was Rs.91,839cr which
if increased by 9.56% becomes Rs.100619 crores.
2. While going through the earlier
framework statements I have come to the conclusion that the ‘salaries’
shown is pay with normal increments plus DA projected.
3. As per the estimated strength and
provision there of statement laid as part of finance budget, the normal
projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted
from Rs 91 839 cr. The budget document does not give the DA expenditure
separately. It gives the total expenditure on all allowances. I have
therefore arrived at the figure based on calculations. However I have
sought the expenditure on DA, HRA, and Transport Allowance separately
through RTI.
4. The increase proposed is Rs.100619 cr
from Rs.91,839cr which means that there will be an increase of Rs.8780
cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal
2015-16.Therefore the whole increase is on basic pay in this fiscal.
5. As we have already seen that the basic
pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this
Rs.60731.This increase is 14.45% only. The expenditure projected for
2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which
works out to 11.32%. This is due to Increment, DA,HRA, TRA etc. The
projection for 2017-18 is 1,16,000 cr.
6. If 40% of Basic Pay is to be given,
the increase of expenditure in the fiscal 2015-16 must be Rs. 24000 cr
as against the Rs. 8780 cr. The demand of JCM Staff side is that there
must be an increase of 371% of basic pay as on 1-1-2016. With the 119%
DA we would be drawing 219% already. The real increase demanded is 152%
of Basic Pay. So not the 152% or 40% of 5th and 6th CPC is intended to
be given to us. Only around 15% is going to be given. As The Terms Of
Reference of 7TH CPC directs them to recommend only what is‘FEASIBLE AND
DESIRABLE’to the Government. Now the Government In Parliament states
only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.? Some PSUs got
15%. But that is for 5 years. But for Central Government Employees it is
for Ten Years. Are We To Accept?
7. Pension expenditure for civilian
pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500
cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr,
which is an increase of Rs.6876 cr.As there will be no Dearness Relief
for the fiscal 2015-16 the increase is to be accounted only to Basic
Pension.
8. I have sought the expenditure break up
for dearness relief under RTI. However the rough calculation shows a
near increase of same 15% in Pension.
9. The impact of 6th CPC on expenditure
as per estimated strength of establishment and provision thereof in
respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr. For three years mostly
on Pay and DA regular PAY Increase per annum: Rs 8685 cr. These are
actual figures. The 219% of Rs. 8685 cr is Rs.19000 cr. EVEN THIS IS
NOT GIVEN.
10. We must issue a warning to the government
afresh demanding acceptance of our demand. I recall my earlier note
wherein I had quoted BibekDebroy’s report that the 7th CPC will not be
that destabilising to the Government as that of 6th CPC. GOVERNMENT
PROVES THAT.
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