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The Centre held pre-budget interaction with states which demanded that central government bear 50 per cent of extra expenditure on pay revision of employees.
The demand, if accepted, will further aggravate the ballooning fiscal deficit of the Union Government.
"Most of the states have started implementing their own pay revision schemes following the Government of India's decision... All the states asked, for at least one year, if the 50 per cent of the additional burden can be borne by the Central Government," VAT Panel Chairman Asim Dasgupta said.
Last year, the Centre implemented Sixth Pay Commission report which hit the exchequer by Rs 22,100 crore for 2008-09.
Talking to reporters after the meeting, Dasgupta, who is also West Bengal Finance Minister said states placed their financial problems before Mukherjee.
They also sought freedom to go for additional market borrowings to help tackle the economic slowdown even if the current limit for fiscal prudence is breached.
At present, states are allowed to raise money from market only if their fiscal deficit remains below 3.5 per cent of their state's GDP. Now, they are demanding that this limit be raised or scrapped till the economic slowdown continues.
Mukherjee, however said, "High level of fiscal deficit are not sustainable in the medium to long term, both for the states and the Centre.
source:PTI
State government employees of Bengal will get a 30% hike in pay from April 1 on an average. Asim Dasgupta,Finance Minister announced this on
Thursday.The Pay Commission's recommendations were submitted to chief minister Buddhadeb Bhattacharjee on Thursday.
The Pay hike will benefit 1 million employees and about 400,000 pensioners.The Pay Commission recommended paying employees their arrears with effect from April 1, 2008, in three annual instalments, preferably from 2009-10.
The minimum basic pay recommended now is Rs 6,600. The commission recommended a minimum pension of Rs 3,300 and a maximum of Rs 35,000. The commission also suggested that pending instalments of DA be paid at an early date. All future instalments of DA should be released twice a year like that done by the Center. The recommendations also include increasing the maximum gratuity payable to Rs 6 lakh from Rs 2.5 lakh and medical allowance had been revised to Rs 300 per month from Rs 100.
Raising various demands, including pay revision on par with the Central Government employees and increasing the pension age of State Government employees to 60 years, the teachers and Government employees under the banner of SETO and FETO will strike work on February 17.Besides SETO, SETCO, SETF and FETO had decided to join the strike.
General convenor of SETO Mr Kottathala Mohanan told that Finance Minister Thomas Isaac had offered to revise the pay on July 1, 2008. But so far there has been no efforts to start the pay revision formalities. But during this period, the Central Government had given better salary package for around 50 lakh of its employees.
The Uttarakhand cabinet extended the benefits of the Sixth Pay Commission to all government-aided school staff both
teaching and non-teaching.
The move comes following a prolonged agitation by the teachers and non-teaching staff of aided schools who were left out of the ambit of the Sixth Pay Commission.
The cabinet also decided to accept the demands of the state government employees for grade pay and approved the Assured Career Progression (ACP) scheme under which an employee would get a higher grade after every 10 years in service in case no promotion was given during the period.
Speaking to reporters after the cabinet meeting, state chief secretary Indu Kumar Pandey said all government employees working in border areas would be given hill development allowance which was earlier not being given to them as they were getting border area allowance.
Areas would be identified which are higher that 1,000 metres and allowance would be paid which would range between Rs 150 and Rs 540 in accordance with the grade pay, said Pandey. Valleys located over a height of 1,000 metres but lower in altitude would also be included .
He said an enhanced family planning allowance would be given to the employees. House rent allowance would be raised for state government employees.
Pandey said these decisions would cost the exchequer Rs 200 crore every year. Besides, an additional Rs 900 crore would be paid as arrears.
He said collective insurance cover for government employees would be raised to amounts ranging from Rs 1 lakh, Rs 2 lakh to Rs 4 lakh, respectively, depending each employee's contribution. Earlier, these amounts were Rs 30,000, Rs 60,000 and Rs 1.2 lakh, respectively.
Chief Minister Hooda announced to give House Rent Allowance(HRA) to the State Government employees on the pattern of Central Government.More employees would be given education allowance which would be Rs. 500 per child per month, but only upto two children.
Government to constitute a committe to discuss the issues of the employees. It will be headed by Chief Secretary and have Financial Commissioner and Principal Secretary,Finance and Legal Remembrancer as its members. The employees can give representaion to the committee before February 15 and it would be decided by 15 March 2009.
I My Ideas
The Joint Administrative Council (JAC) of the All Manipur Trade Unions Council (AMTUC) and All Manipur Government Employees' Organisation (AMGEO) on Friday has sealed all the government offices in the state.
Sate government's Failure to implent the sixth pay commission started the striker in November 08.
Warning From the Unions.
About 60,000 employees have been protesting since November 6 demanding payment fixed by the commission. Employees locked the main gates and rooms, including that of directors, in various offices in Imphal and other districts.
Government to analyse the situation.
If the government is silent on the implenmentation of the pay commission, then the unions may resorts to new form of agitation.
My IdeAs
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