The government not only approved the 7th Pay Commission recommendations but also went ahead with the allowances with effect from July 2017 much to the annoyance of the central government employees. Why the did the government resort to delaying tactics? Central government employees who waited for good news on allowances and HRA were largely disappointed with the government.
Intentionally delayed The government resorted to delaying tactics to save money. The Committee on allowances was formed only to add to the delay. Government employees were awaiting good news from the government especially on the allowances. However following the Cabinet nod to the recommendations the employees realised that the allowances would be paid from July 2017 as opposed to July 2016 which the employees had sought.
Rs 40,000 crore saved The government which could have implemented the pay panel’s recommendations much earlier however decided to delay the same. It is said that the delay was largely due to the financial gains of the government. The financial condition of the government is good, but still it decided to delay the implementation. As a result of the delay, the government saved Rs 40,000 crore.
Committee on allowances was a delaying tactic While the 7th Pay Commission submitted its report long back, the government decided to set up a committee on allowances. This committee was headed by Finance Secretary Ashok Lavasa was set up only to delay matters further. The committee was set up in June 2016 and it submitted its report only in April 2017. It was then in June that the Cabinet cleared the recommendations.
Anguish, pain and anger The central government employees are deeply saddened in the manner in which the government implemented the recommendations. The anguish mainly is over the allowances and the date of implementation. Since the government implemented the allowances only from July 2017, central government employees lost one full year of allowances.