After 14th Finance Commission, 7th pay panel's report looms

After 14th Finance Commission, 7th pay panel's report looms

FINANCE minister Arun Jaitley at a press conference after the 14th FINANCE Commission report. The Seventh Pay Commission will submit its report by October 2015. Photo: AP  

New Delhi: After the recommendations of the Fourteenth FINANCE Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union FINANCE ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year. 

The SPC will submit its report by October 2015.  

“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the FINANCE ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday.  

The Union Budget reduced the plan expenditure for the first time in many years by Rs.2,657 crore to Rs.4.7 trillion in 2015-16 from the revised estimate of 2014-15, as the centre shared an additional Rs.1.86 trillion with states. The FINANCE Commission has raised the untied share of states in net central taxes to 42% from 32%. 

The tight fiscal situation forced the government to revise its fiscal consolidation road map and set a less ambitious fiscal deficit target of 3.9% of the gross domestic product (GDP) for 2015-16 against the earlier target of 3.6% set in last year’s budget.  

The fiscal deficit of 4.1% for 2014-15 was also achieved through a sharp reduction in plan expenditure up to Rs.1.1 trillion. Finance minister Arun Jaitley in his budget speech said he had deferred the 3% fiscal deficit target to fiscal 2017-18 from 2016-17. 

The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justiceAshok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the SPC is likely to seek extension till October.

The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth FINANCE Commission estimates. 

“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the FINANCE Commission said.  

The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said. 

The FFC said that while the FINANCE ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years.  

However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the FINANCECommission. 

A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th FINANCECommission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added. 

N.R. Bhanumurthy, professor at the National Institute of Public FINANCE and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added. 

The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments. 

The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said.  

The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.

Source : http://www.livemint.com/

After 14th Finance Commission, 7th pay panel's report looms

FINANCE minister Arun Jaitley at a press conference after the 14th FINANCE Commission report. The Seventh Pay Commission will submit its report by October 2015. Photo: AP  

New Delhi: After the recommendations of the Fourteenth FINANCE Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union FINANCE ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year. 

The SPC will submit its report by October 2015.  

“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the FINANCE ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday.  

The Union Budget reduced the plan expenditure for the first time in many years by Rs.2,657 crore to Rs.4.7 trillion in 2015-16 from the revised estimate of 2014-15, as the centre shared an additional Rs.1.86 trillion with states. The FINANCE Commission has raised the untied share of states in net central taxes to 42% from 32%. 

The tight fiscal situation forced the government to revise its fiscal consolidation road map and set a less ambitious fiscal deficit target of 3.9% of the gross domestic product (GDP) for 2015-16 against the earlier target of 3.6% set in last year’s budget.  

The fiscal deficit of 4.1% for 2014-15 was also achieved through a sharp reduction in plan expenditure up to Rs.1.1 trillion. Finance minister Arun Jaitley in his budget speech said he had deferred the 3% fiscal deficit target to fiscal 2017-18 from 2016-17. 

The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justiceAshok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the SPC is likely to seek extension till October.

The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth FINANCE Commission estimates. 

“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the FINANCE Commission said.  

The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said. 

The FFC said that while the FINANCE ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years.  

However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the FINANCECommission. 

A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th FINANCECommission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added. 

N.R. Bhanumurthy, professor at the National Institute of Public FINANCE and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the

After 14th Finance Commission, 7th pay panel's report looms

FINANCE minister Arun Jaitley at a press conference after the 14th FINANCE Commission report. The Seventh Pay Commission will submit its report by October 2015. Photo: AP  

New Delhi: After the recommendations of the Fourteenth FINANCE Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union FINANCE ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year. 

The SPC will submit its report by October 2015.  

“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the FINANCE ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday.  

The Union Budget reduced the plan expenditure for the first time in many years by Rs.2,657 crore to Rs.4.7 trillion in 2015-16 from the revised estimate of 2014-15, as the centre shared an additional Rs.1.86 trillion with states. The FINANCE Commission has raised the untied share of states in net central taxes to 42% from 32%. 

The tight fiscal situation forced the government to revise its fiscal consolidation road map and set a less ambitious fiscal deficit target of 3.9% of the gross domestic product (GDP) for 2015-16 against the earlier target of 3.6% set in last year’s budget.  

The fiscal deficit of 4.1% for 2014-15 was also achieved through a sharp reduction in plan expenditure up to Rs.1.1 trillion. Finance minister Arun Jaitley in his budget speech said he had deferred the 3% fiscal deficit target to fiscal 2017-18 from 2016-17. 

The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justiceAshok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the SPC is likely to seek extension till October.

The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth FINANCE Commission estimates. 

“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the FINANCE Commission said.  

The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said. 

The FFC said that while the FINANCE ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years.  

However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the FINANCECommission. 

A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th FINANCECommission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added. 

N.R. Bhanumurthy, professor at the National Institute of Public FINANCE and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added. 

The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments. 

The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said.  

The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.

Source : http://www.livemint.com/ capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added. 

The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments. 

The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said.  

The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.

Source : http://www.livemint.com/

Change of holiday for operative offices in AP Circle

Change of holiday for operative offices in AP Circle

As per the circle Office memo no. Tech/Holiday/2015 dated 03.03.2015, it was decided to change closed holiday from 06.03.2015 (Holy) to 21.03.2015 (Ugadi ) and RH to be observed on 06.03.2015 for operative offices. There is no change of holiday for administrative offices on 06.03.2015.

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Sukanya Samriddhi Scheme: Income Tax Benefits And Other Features

Sukanya Samriddhi Scheme: Income Tax Benefits And Other Features

The Sukanya Samriddhi Scheme has got tax-free status on interest income and withdrawal in the Budget. "Investments in Sukanya Samriddhi Scheme is already eligible for deduction under Section 80C. All payments to the beneficiaries including interest payment on deposit will also be fully exempt," Finance Minister Arun Jaitley said in his Budget Speech.

Sukanya Samriddhi Scheme is a small savings scheme which was launched in January this year and is aimed at encouraging savings for a girl child's education and marriage.

Taxation: A contribution of up to Rs. 1.5 lakh qualifies for income tax deduction under Section 80C of Income Tax Act. The clarifications in the Budget now make it clear that the entire maturity amount of the Sukanya Samriddhi Scheme and the interest earned are non-taxable, says Suresh Sadagopan, the founder of Ladder 7 Financial Advisories. In terms of tax treatment, it is on the lines of Public Provident Fund which also qualifies for Section 80C benefits, he says. Mr Ramesh says Sukanya Samriddhi Scheme is a good investment option to save for a girl child's future needs because the maturity amount is tax-free in the hands of the girl child. When the scheme was launched earlier this year, it was not clarified whether the withdrawal as well as interest would be exempted from tax.

Opening of account: The account may be opened by the guardian in the name of a girl child till she attains the age of ten years. Only one account is allowed per girl child. Parents can open this account for a maximum of two children. In case of twins or triplets, this facility will be extended to the third child. Account can be opened in post offices or authorized bank branches.

Age: The maximum age limit of the girl child for opening this account is 10 years. This year, a one-year relaxation has also been given.

Maturity: The account can be closed after the girl child in whose name the account was opened completes the age of 21. If account is not closed after maturity, the balance will continue to earn interest as specified for the scheme from time to time.

Withdrawal: Up to 50 per cent of the accumulated amount can be withdrawn after the account holder turns 18.

Interest rate: The government will every year declare the interest rate of the scheme. For 2014-15, the government would be paying 9.1 per cent interest. In comparison, PPF pays 8.7 per cent for 8.7 per cent interest in 2014-15.

Transferability: The account may be transferred anywhere in India if the girl child shifts to a place other than the city or locality where the account stands.

Deposits: The account may be opened with an initial deposit of Rs. 1,000 and thereafter any amount in multiple of Rs. 100 can be deposited. The minimum deposit for a financial year is Rs. 1,000 and maximum Rs. 1.5 lakh. Deposits in an account can be made till completion of fourteen years, from the date of opening of the account.

Penalty: An account where minimum amount has not been deposited in a particular year will attract a fine of Rs. 50 per year.

Operation of account: The account will be opened and operated by the guardian of a girl child till the girl child, in whose name the account has been opened, attains the age of 10 years. On attaining age of 10 years, the girl child may herself operate the account.

 

Source : NDTV

Provision for 7th Pay Commission in Budget 2015-16

The Budget is also gravely silent on fund allocations for the Seventh Pay Commission award, due for implementation in 2016.  The budgetary documents are stressing upon likely burden from the report of the 7th Pay Commission.  However the funds are allocated for Commission'ss establishment.  The extract of budgetry documents which are related to 7th CPC are mentioned below:-

Speech of Finance Minister - Heading Fiscal Roadmap para 23:-

Budget  2015-2016

Speech  of

Arun Jaitley

Minister of Finance

February 28,  2015

Fiscal Roadmap

23. I want to underscore that my government still remains firm on achieving the medium term target of 3% of GDP.  But that journey has to take account of the need to increase public investment.  The total additional public investment over and above the RE is planned to be `1.25 lakh crore out of which `70,000 crore would be capital expenditure from budgetary outlays.  We also have to take into account the drastically reduced fiscal space; uncertainties that implementation of GST will create; and the likely burden from the report of the 7th Pay Commission.  Rushing into, or insisting on, a pre-set time-table for fiscal consolidation pro-cyclically would, in my opinion, not be pro-growth.  With the economy improving, the pressure for accelerated fiscal consolidation too has decreased.  In these circumstances, I will complete the journey to a fiscal deficit of 3% in 3 years, rather than the two years envisaged previously.  Thus, for the next three years, my targets are: 3.9%, for 2015-16; 3.5% for 2016-17; and, 3.0% for 2017-18.  The additional fiscal space will go towards funding infrastructure investment.

***

In document to study Medium Term Fiscal Policy Statement for further 3 years: Para 12:-

MEDIUM TERM FISCAL POLICY STATEMENT

12. However, it is pertinent to note that the resource base of the Centre will be constrained following the implementation of the FFC. With steep jump in the sharing pattern of tax revenues, the revenues of the States, which is surplus in most of the cases, will be further augmented on one side and the Centre will face resource crunch in one of the difficult phases of consolidation underway. While, the revenues are constrained in the FY 2015-16, it would continue over the medium term framework in FY 2016-17 and 2017-18.

Moreover, the 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will be also be spanning out in the period. Thus, in the medium term framework the fiscal position will continue to be stressed. However, with necessary corrections on the Plan side under the new paradigm of Centre-State fiscal relationship and reforms on the subsidies, with better targeting and policy initiatives, it is expected that over the medium framework much of the fiscal correction would have taken shape, leaving room for building up better fiscal management thereupon. The change is monumental; and needs dextrous manoeuvring in this initial phase.

(c) Pensions

42. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at ` 74,076 crore in RE 2013-14 and at the year-end it was accounted at ` 74,896 crore. In BE 2014-15, pension payment in nominal terms was estimated at ` 81,983 crore. In RE 2014-15, it has been revised at ` 81,705 crore. The pension payment of Central Government for the past few years has been growing faster than the salary expenditure. The main reason for this is that there is an increase in number of pensioners due to higher retirements and increased life expectancy. In view of the likely impact of VII Pay Commission, Pension payment of the Government likely to be about 0.7 per cent of GDP in FY 2016-17 and FY 2017-18 respectively

***

In document to study Medium Term Fiscal Policy Statement for further 2 years:

FISCAL POLICY STRATEGY STATEMENT

Expenditure Management Commission:

37. While Government has managed to control the expenditure through rationalization in the fiscal consolidation phase, quality of expenditure remains an area that needs to be addressed. The ongoing fiscal consolidation has been successful in taming the fiscal deficit; however there is still imbalance in the public finance on the revenue side. As discussed in earlier section, concerted efforts are required to accomplish the target set for the revenue deficit and effective revenue deficit in the new FRBM regime. This entails structural changes in the Plan spending and definitive measures to contain Non-Plan spending within sustainable limits. Moreover, in the medium term, award of VII Pay Commission and XIV Finance Commission pose significant downside risk to Public Finance. Thus, time has come to look into the places where Government spends money and output achieved from it. Government will constitute an Expenditure Management Commission, which will look into various aspects of expenditure reforms to be undertaken by the Government.

MEDIUM TERM FISCAL POLICY STATEMENT

(c) Pensions

39. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at ` 74,076 crore in RE 2013-14 and at the year end it was accounted at ` 74606 crore, marginally above the RE figure. In BE 2014-15, pension payment in nominal terms estimated at `81,983 crore. The pension payment of Central Government for the past few years has been growing faster than the salary expenditure. The main reason for this is that there is an increase in number of pensioners due to higher retirements and increased life expectancy. Accordingly, keeping past trend in view the Pension Expenditure of the Government has been projected to grow at 10.4 per cent in FY 2015-16. In view of the likely impact of VII Pay Commission, higher growth is assumed in FY 2016-17.

Details of funds allocated for Establishment of 7th CPC:-

(In crores of Rupees)

	Major Head	Actual 2013-2014			Budget 2014-2015			Budget 2015-2016			Revised 2014-2015
		Plan	Non-Plan	Total	Plan	Non-Plan	Total	Plan	Non-Plan	Total	Plan	Non-Plan	Total
Other Administrative Services
6. Seventh Central Pay Commission	2070	...	0.22	0.22	...	11.91	11.91	...	10.76	10.76	...	11.54	11.54

Seventh Pay Commission likely to submit report in October 2015

After 14th Finance Commission, 7th pay panel’s report looms : LiveMint

Finance ministry fears that its revenue will be affected in 2016-17 as it has to absorb new pay panel recommendations

New Delhi: After the recommendations of the Fourteenth Finance Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union finance ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year.

The Seventh Pay Commission will submit its report by October 2015. 

Click here for details of provision for 7th CPC in union Budget -2015-16

“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday. 

The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the Seventh Pay Commission is likely to seek extension till October. 

The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth Finance Commission estimates. 

“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the Finance Commission said. 

The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said. 

The FFC said that while the finance ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years. 

However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the Finance Commission. 

A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th Finance Commission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added. 

N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added. 

The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments. 

The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said. 

The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.

1. The Oriental Insurance Company Ltd.     

Name of Post -Administrative Officers (Scale-I)

No. of Post- 246

Last Date-20.03.2015. Details: Click Here

2. Heavy Water Board

Name of Post-Category –I Trainee & Category –II Trainee 

No. of Post- 167

Last Date-16.03.2015

3. UNION PUBLIC SERVICE COMMISSION

Name of Post-Joint Director, Scientists SB (Chemical), Professor etc.

No. of Post-27

Last Date-  19.03.2015                       

4. Nuclear Power Corporation of India Ltd.            

Name of Post-Executive Trainee

No. of Post-110

Last Date- 20.03.2015

5. Central Pollution Control  

Name of Post-Research Associates – I and Junior Research Fellow

No. of Post-70

Last Date- 30 days after publication      

POSTAL JOINT COUNCIL OF ACTION

NATIONAL FEDERATION OF POSTAL EMPLOYEES

FEDERATION OF NATIONAL POSTAL ORGANISATIONS

ALL INDIA POSTAL EMPLOYEES UNION-GDS (NFPE)

NATIONAL UNION GRAMIN DAK SEWAKS

NFPE-FNPO (PJCA) unanimously decided to hold Protest demonstration wearing black badges in front of all divisional offices on 3^rd March 2015 against the Anti labour, Anti people budget 2015.

D. Theagarajan                                                                   R. N. Parashar

Secretary General                                                               Secretary General

FNPO                                                                                   NFPE

Copy to: -

All General Secretaries of both Federations. They are requested to mobilize the Circle, Divisional, Branch Secretaries to ensure mass participation and grand success of the above programme.