New Delhi: Influential quarters of the government are lobbying for fatter allowances under 7th Pay Commission award to central government employees as the next few months will be crucial for BJP-led central government for upcoming Uttar Pradesh Assembly election, which is likely to be held early 2017.
The PMO has recommended to offer fatter allowances under 7th Pay Commission award in October to augment the financial assistance to central government employees, sources in Finance Ministry familiar with the matter said on Thursday asking not be named.
“We have seen the recommendations of the PMO. Accordingly the Finance Ministry woks hard for the execution of fatter allowances, which would definitely implement in October,” said sources.
They also said the report of the committee on allowances, headed by Finance Secretary Ashok Lavasa is expected to be submitted to the government “in one or two days”.
The committee on allowances, which was set up in July this year, is looking into “the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations”, and any other matter relevant to this issue.
In the wake of intense central government employees’ pressure following the 7th pay commission recommendations of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
The sources said increase in allowances would be Rs 29,300 crore and the government has spent Rs 39,100 crore on salaries and arrears in August for the central government employees. They government has also spent Rs 33,700 crore on pension in August for central pensioners.
In percentage terms, the overall increase according to the 7th Pay Commission recommendation was about 23.5 per cent where the increase in pay was 14.28 per cent, the pension was 24 per cent and increase in allowances would be 63 per cent.
“The PMO, narrating the “importance” of the implementation of fatter allowances, said it was necessary to provide different incentives, including a higher allowances, to the central government employees to build a ‘pro-employees’ administration.
The PMO asked to adopt the method in which allowances of central government employees in all segments automatically go up with the pace of inflation or consumer price indices,” sources added.
Last month, Finance Minister Arun Jaitley had said in Rajya Sabha, “ Whatever the committee on allowances decides in respect of fatter allowances, it will go to the Cabinet for approval.”