Tuesday, December 26, 2006

Pay Commission Studying Economic Condition of States

According to the a news article published in the 'Dainik Jagran', the Sixth Central Pay Commission has started an exercise to learn about the fallout of the implementations of Fifth Pay Commission recommendations in the states after getting inputs from the Central Government about this. States got nearly bankrupt after the implementations of the Fifth Pay Commission and Central Government had to intervene and had to help the states to recover from the economical draught.

The Sixth Pay commission is setup to revise the pay scale of the Central Govt. employees only and its recommendations are implementable to the Central Govt. employees only and for those who are under the control of the Central Govt. States are not bound to follow the recommendations of the Central Pay Commission. But by the convention, State Govt. increase pay of their employees on the pattern of the Central Government pay scales. Therefore, Pay commission is alert this time in regards to the implementation of its report by the states.

As per the story, the Pay Commission has asked the states for important information. A questionnaire has been sent to the states in which details of the effects of the fifth pay commission in total and on per years year basis has been asked.

In the questionnaire, apart from the overall impact, expenditure on the pay, allowances and pensions for last five years, GroupWise no. of employees and pensioners in the local bodies, Government and autonomous institutions has been asked. The states are also to tell whether they have made a law for the fiscal deficit or not. The states has to provide position of the balance of the fund, income and expenditure statement and advance analysis of treasury from the year 2007-07 to 2015-16. The pay commission is doing all this exercise to avoid the same conditions at the time of the implementation of the fifth pay commission.

Fifth pay commission was setup in the year 1994 and its recommendations were implemented from the January 1997 and after the implementations in the year 1997, the states face acute shortage of the fund as around 90% of the revenue started to consumed by the pay bills only. In the year 2000 some 13 states were not in position to provide salary to their employees. At that time central government had to help the states financially.

Source : Dainik Jagran


  1. Anonymous6:31 PM

    This problem can be addressed to a great extent by making it clear that there is no parity needed for state employees with central employees. As pointed by many in this and other forums the need of the hour is to review the pay and perks of the higher level officers so as to attract the best talent. Since senior officers in the states also being officers of all india services, will be covered by SPC, no seperate pay commission will be needed for the states. In the lower levels inflation adjustment only will be sufficient. No top candidates are required in these levels. However they also should be given good opportunity to come up in career, and go for deputation to central services. This way state finances will not be much affected.

  2. Anonymous12:42 PM

    Central Government employees must be always treated above the State Government employees.

  3. Anonymous4:59 PM

    FOOD FOR THOUGHT: For a Government which can’t pay reasonably (rather better) and do justice and welfare for it’s employees, there is serious doubt that it would be able to do justice and welfare of rest of the citizens. Mr. P. Chidambaram think about it, before Congress losses all over India (already the alarming bells are ringing in several recent State election results for Congress) and it throws you out of your job.