New Delhi, Sept 16: The staggering implementation of allowances for central government employees as per the 7th Pay Commission recommendations, along with no release of arrears, has caused disappointment among a section of the workforce, the employee forum claims. One of the reasons, analysts claim, the government has refrained from releasing the arrears is its possible impact on the exchequer.
The 7th Pay Commission, which was poised to be cost the Centre Rs 1.02 lakh crore, would cast a heavy toll on the exchequer, claim critics. The whopping “260 per cent” salary rise, using the 2.57 fitment factor, has increased the outflow from the coffers at 2.5 times the additional rate, experts point out. As such, the release of arrears on the allowances would further stress the exchequer.
However, the National Joint Council of Action or NJCA, which has been leading the pay commission negotiations with the Centre, says the argument of exchequer being adversely affected is being blown out of proportion.
“Government had allocated Rs 1 lakh, two thousand crores for implementation of 7th Pay Commission. That amount has not been completely spent. Even if they will provide us arrears on allowances from January 1, 2016, I believe the cost would not exceed beyond the amount allocated,” NJCA convenor Shiv Gopal Mishra said, in an earlier conversation with India.com.
The union leader also discarded the RBI’s claim of 7th CPC allowances being one of the potential contributors towards inflation in the near future. “The RBI’s assessment is flawed. It is evidently incorrect as the employees have not been granted arrears on allowances, which was their right,” he added.