By Delaying Allowances Roll-Out, 7th CPC (Pay Commission) Government Saved Rs.40, 000 crores: Recent report
New Delhi, July 23: The Union Government recently accepted recommendations on higher allowances under 7th Pay Commission after which a large number of Central Government employees got hiked salaries. But as per come recent reports, government managed to save Rs.40, 000 crore of money by delaying the implementation of allowances.
According to The Sen Times, the delay in the implementation of allowances is chiefly because of the financial gains of the government while financial condition of the government is very sound. Report also suggests that this delay in implementation of allowances step also resulted in huge savings for the Union Government.
The report further claimed that the government used delaying tactics to save government’s money not to pay arrears of allowances on the pretext of formation of ‘Committee on Allowances’ in June 2016, for examination of allowances as the 7th Pay Commission had the recommended abolition of 51 allowances and subsuming 37 other allowances out of 196. Also Read – 7th CPC (Pay Commission) Latest News: Central Government Employees Irked With Centre Over Allowance Hike.
Even though Union Government accepted the demand of Central Government employees about increasing allowance under the 7th Pay Commission, as per some recent reports it is said that a large section of employees are actually not very happy with the centre’s decision.
The employees’ union expresses their anger against ‘the scanty’ allowances hike executed under the 7th Pay Commission and also about not getting their arrears of the allowances.
The Sen Times report further stated that the government employees are upset with PM Modi government as a large number of central government employees were desperately waiting for their allowances since last 18 months. They got further annoyed, when they noticed little hike without any arrears.
Last month Finance Minister Arun Jaitley and the Union Cabinet stuck with the 7th Pay Commission’s recommendations on allowances and gave nod accordingly. The Narendra Modi government’s major conflict is on the House Rent Allowance (HRA), which the unions demanded at the rate of 30 per cent, 20 per cent and 10 per cent of basic pay with arrears.
The ‘Committee on Allowances’ headed by Finance Secretary Ashok Lavasa submitted its final report to Finance Minister Arun Jaitley on April 27 and the Union Cabinet approved the recommendation on June 28, which came into effect from this month.
The committee led by Justice AK Mathur on 7th Pay Commission had submitted its report to Finance Minister Arun Jaitley in November 2015.
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