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Saturday, 28 May 2016

7th Pay Commission: Central Govt Employees Confederation want 7CPC implementation soon

New Delhi, May 27:
With a new development coming almost everyday on the Seventh Pay Commission, the central government employees are getting more ardent day by day.
Demanding fast implementation of the seventh pay commission recommendations, in Thiruvananthapuram, the Central Government Employees' Confederation has said that the same should be implemented speedily.
According to a The Hindu report, "A press note issued here said the recommendations of the pay commission, which are beneficial to 50 lakh Central government employees and 30 lakh pensioners, ought to have been implemented with effect from January 1, 2016." The recommendations, which have come after a gap of 10 years, should be implemented immediately with necessary amendments, the confederation further said in the press release. Earlier, the central government employees had also said that they are planning to strike work on July 11 so that they get higher wages and allowances under the 7th Pay Commission.

OneIndia News

Cutting nose to spite face

The author advises that "priority needs to be given to reducing civilian manpower paid from Defence Estimates, before reducing non-combat manpower of the Services" and he is right. The teeth to tail ratio has gone askew that the tail has begun wagging the dog for a very long time. In addition to the surplus, superfluous civil work force scattered all over the country we have a very special species that hangs out only in Delhi - in fact they have spawned generations who have lived, reproduced and died in the same government quarters in Moti Bagh, Sarojininagar, and similar colonies. The tooth-to-tail ratio is a military term that refers to the amount of personnel ("tail") it takes to supply and support each combat soldier ("tooth"). While both "tooth" and "tail" soldiers may find themselves in combat or other life-threatening situations "tooth" soldiers are those whose primary function is to neutralize the enemy. The ratio is not a specific measure but rather a general indication of an army's actual military might in relation to the resources it devotes to supply, upkeep, and logistics. An army's tooth-to-tail ratio is often inversely related to its technological capabilities and subsequently its overall power. To quote Maj Gen Dhruv Katoch, “A look at the larger national environment gives a different picture and suggests an alternative and more efficient method of reducing expenditure that could generate more funds for the modernisation process. Outside the ambit of the armed forces, a significant portion of the tail is found in India’s eight Defence Public Sector Undertakings (DPSUs) and 39 Defence Ordnance Factories (OFs), all of which come under the Department of Defence Production, Ministry of Defence (MoD). The DPSUs and the OFs were mandated to become the backbone of India’s defence production, but sadly, that promise remains unfulfilled”.

(Read more at: http://www.indiandefencereview.com/spotlights/teeth-to-tail-ratio-looking-beyond-the-obvious/).

With regard to the specific comment of an Accounts Officer of the CDA about the Air Force Accounts Branch, please read the accompanying article ( a biased report) on a scam in Karwar. Cheers, Carl. http://www.dailypioneer.com/columnists/oped/cutting-nose-to-spite-face.html

Cutting nose to spite face

Deepak Sinha
27 May 2016

[To reduce revenue expenditure, look at civilians paid from Defence Estimates, not Services’s non-combat manpower]

The Minister for Defence has recently announced the formation of an 11-member committee, led by Lieutenant General DB Shekatkar (Retd), to look into areas of overlap and convergence within the three Forces — the Indian Army, Navy and Air Force. The committee will also identify areas to “rationalise manpower”, examine possible areas of multi-tasking by troops and suggest ways to “optimise” combat potential by bringing in more technology instead of more boots. This is to ensure that the burgeoning revenue expenditure, the monies spent on pay, allowances and pensions among other things, is brought under control so that more funds are available for capital expenditure, especially acquisition of modern weapon systems. As Bhartendu Kumar Singh of the Indian Defence Accounts Service points out, “The Accounts Branch of the Indian Air Force, for example, has 492 commissioned officers and 7,000 men catering to the pay matters of 1,60,000 officers and men in the Air Force.
On a competitive note, the same can be provided by 300 people on the civilian side very easily.” There can be no two opinions that such a detailed examination is necessary and must be undertaken periodically, except to suggest that the period of three months given to the Committee to complete its task seems grossly insufficient, if it is to do justice to this critical issue. In fact, one may even suggest that by restricting this examination only to the military, the Defence Minister has not gone far enough. The reasons for this are not far to seek.

The MOD, for example, has sanctioned posts of 5, 85,000 civilians, which is more than the active strength of the Pakistan Army. The MOD spends more than Rs1,000 crore annually on pay, allowances and establishment of the Ministry of Finance personnel who are attached to it.

The civilian-manned Military Engineering Services spends nearly double the amount of the work it does on its own establishment costs.

The Defence Research and Development Organisation only utilises 39 per cent of its budget on research and development while the remainder is spent on establishment costs.

The burgeoning pension bill, which is expected to touch Rs60,000 crore this year after taking into account the sanctioning of One-Rank-One-Pension, is another problem.
While reduction of manpower will certainly go some way in controlling this issue, the fact is that the per capita expenditure on 25 lakh military veterans and their kin amounts to approximately Rs1.5 lakh annually, while the four lakh civilians paid from the defence pension budget receive an average of Rs5.38 lakh a year, which will shoot up astronomically as and when the Seventh Pay Commission report is implemented.

These examples show that priority needs to be given to reducing civilian manpower paid from Defence Estimates, before reducing non-combat manpower of the Services.
The fact is that civilian pensions, despite catering to one-fifth the number of military pensioners, make for approximately 36 per cent of defence pensions — and given our difficulties in ensuring employment, even populism suggests it is better to reduce civilians who cost five times more than to reduce the military.
On the question capital expenditure being given pride of place in our defence budget to ensure our Forces are adequately equipped, the fact is that this issue is much more than just adequate budgeting. Between eight to 13 per cent of the funds marked for capital expenditure remains unutilised. For 2015-16, this was as high as 13.4 per cent, amounting to returning Rs11,505 crore.
This should count as criminal negligence, given the poor state of our weapons and equipment, on the part of those within the military responsible for procurement. And this is where the issue gets complicated.

The Government always shows its ‘firm commitment’ to national security by allotting adequate funds to the MoD but then manipulates the budget to cater to unforeseen situations.

The Finance Minister cannot touch revenue allotments as those are fully committed but, with the active connivance of the MoD (Finance), he takes full advantage of the capital allotment to meet unexpected expenses.

All bureaucratic measures are put to good use to delay or derail the procurement process, resulting in vast amounts remaining unspent.

Defence Minister Manohar Parrikar is known for his intelligence and clarity of thought but like one of his earlier predecessors, Krishna Menon, he too may find his reputation dented somewhat, if he looks at issues through blinkers and acts in haste. It makes little sense to cut off your nose to spite your face. To start with, instead of setting up new committees, he will do well to implement the report of the Naresh Chandra Committee and the recommendations of the Group of Ministers of AB Vajpayee Government.

[Kargil Review Committee]
The writer is a military veteran and consultant with the Observer Research Foundation

Govt likely to table the 7th pay commission report before Cabinet next month; notification to come soon​​

New Delhi: Central government employees can expect to get some good news trickling in from government sources towards the end of June.

As per reports, the Finance Ministry is likely to table the 7th Pay Commission report to the Cabinet for approval in the last week of June. The 7th pay panel headed by AK Mathur had recommended the minimum salary for central government employees at Rs 18,000 and maximum salary at Rs 2,50,000. As employees protested against the wage hike calling it the "lowest ever" raise, the government set up the Empowered Committee of Secretaries group to review the AK Mathur-panel's recommendations.

The Empowered Committee of Secretaries on the Seventh Central Pay Commission is expected to soon wrap up its report on the remuneration of government employees. Sources added that even the Prime Minister's Office is keen on a favourable pay hike for the central government employees, so the panel is likely to recommend a minimum salary at Rs 24,000 and the highest salary at Rs 2,70,000.
Sources added that the government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. The payout could be substantial with salary hike and arrears adding up to a Rs 1.02 lakh crore burden on government finances. Report add that once the report moves from the table of the empowered group of committee to the cabinet, there is no reason why the cabinet would inordinately delay it.

The Finance Ministry is keen that higher salaries reach government employees just before the festive season starting mid-August, as spurt in consumption during the festive period will have a domino effect on the economy.

Source: Zee News

West Bengal employees blessed with 10% Interim Relief

West Bengal employees blessed with 10% Interim Relief

After coming to power for the second time, the Mamata Banerjee led government on Friday announced a grant of interim relief to state government employees amounting to 10 percent of their band pay. "In our first cabinet meeting, we have decided to provide a grant of interim relief to state government employees amounting to ten percent of the band pay drawn by them," said state Finance Minister Amit Mitra. "This will be effective from July and will cover state employees, teachers, local government employees and pensioners," he said. "The interim relief is small in nature but the net impact to the state exchequer will be around Rs.3,000 crore," said Banerjee.

The difference in dearness allowance for state employees compared to their central counterparts stands at 50 percent. Banerjee had announced a 10 percent hike in dearness allowance for the state employees from January reducing the difference to 44 percent. Later in March, the centre hiked the allowance by another six percent. The government in its first stint had announced the Sixth Pay Commission to review the pay structure of state government employees.

7th Pay Commission Award To Go To Cabinet Next Month

udhary 7th Pay Commission Award To Go To Cabinet Next Month

New Delhi: Finance Ministry plans to put up the 7th Pay Commission award for cabinet approval by fourth week of June.

Empowered Committee of Secretaries has been formed in consultation with Finance Minister Arun Jaitley to process the pay panel’s recommendations. 7th Pay Commission award is likely to be sent to the Union Cabinet for approval next month, a top Finance Ministry official said on Thursday asked not to be named because he was not authorized to release the information. “Implementation cell of the 7th Pay Commission met all stakeholders and took their inputs.

The Empowered Committee or Secretaries group will be holding discussions internally on the inputs of 7th pay commission recommendations on June 11 and hope to put up the 7th Pay Commission award before cabinet by fourth week of June,” the official said. The Finance Ministry received huge comments from various stakeholders on 7th pay commission recommendations.

The official also said 7th Pay Commission award for central government employees and pensioners will be implemented within July. “The Secretaries group now is reviewing the Implementation cell’s observation and the process of 7th Pay Commission award is in the last stage,” he added. He said Implementation cell in Finance Ministry has already sent its observation on 7th pay commission recommendations after vetting to the Secretaries group.
The 7th pay commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 52 lakh pensioners.
The Commission headed by Justice A K Mathur proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions. The increase in allowances was recommended 63% while pension was proposed to rise 24%. Apart from this, the Commission also recommended for abolition of some allowances and advances.
After receiving the 7th pay commission recommendations on November 19, government set up a 13 members secretary-level Empowered Committee or Secretaries group, headed by Cabinet Secretary P K Sinha, in consultation with Finance Minister Arun Jaitley to process the pay panel’s recommendations that would put an additional burden of Rs 1.02 lakh crore on the exchequer.
An Implementation Cell has been created in the Finance Ministry which works as the Secretariat of the Secretaries group. The Secretaries group is likely to purpose 30 percent basic pay hike of central government employees and it’s also recommending for doubling of existing rates of allowances and advances.

TST

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