Allowances Committee Report and Financial Expenditure

Allowances Committee Report and Financial Expenditure

Comrades,
The Central Government Civilian Employees numbering around 36 lakhs employees and Defence forces numbering around 15 lakhs are waiting for a long period for the allowances committee to submit its report and almost 10 months have passed , the allowances committee has not submitted its report so far , the patience of the Central Government Employees is almost over , the main demand of the CG employees is house rent allowance , the expenditure towards the HRA is just at 4.15 % of the total expenditure , the breakup of pay and allowances is pay including DA constitute about 80% and all allowances together constitute around 20% of the total expenditure, even if the 7th CPC recommendations are accepted the HRA expenditure shall be at just 9% of the total expenditure, even if the staff side demands of the HRA is accepted the total expenditure shall not cross 10%, let us examine the following facts.

The total expenditure towards pay & allowances for 36 lakhs Central Government employees for the year 2015-16 is Rs 1,50,028.57 ( in crore) , Out of the total expenditure of 1,50,028.57 crore, the percentage expenditure on Pay, Dearness Allowance (DA), House Rent Allowance (HRA) and other allowances are Pay Rs 55,162.69 crores (36.77%) , DA Rs 64,304.33 crores (42.68%) , allowances constitute Rs 30561.55 crores of which HRA Rs 6,225.14 crores ( 4.15% ) and. Transport Allowance constitute Rs 6186.05 crores and other allowances 16.22% respectively.

Out of the total expenditure of Rs 6,225.14 crore on HRA in 2015-16, the HRA expenditure for X class cities is Rs 2287.80 crore which is around 36.75% of the total expenditure on HRA.

Number of Sanctioned Posts is 36,49,468 and Number in Position is 32,28, 921 vacant posts is 4,20,547 , the Defence forces constitute around 15 lakhs with an Indian Army strength of 11 lakh.

Pay commission views : Para number 16.3

16.3 The increases in allowances relate to the following:

a) House Rent Allowance (HRA): This accounts for the principal increase in the expenditure on allowances since it is calculated as a percentage of the basic pay and the rise in basic pay based on recommendations of the Commission would be reflected as increased HRA. The expenditure on account of HRA is likely to go up from Rs.12,400 crore to Rs.29,600 crore, an increase of Rs.17,200 (138.71%). This figure also includes an expenditure of Rs.3,700 crore that is likely to occur on account of the expansion in coverage of HRA benefiting personnel serving in the CAPFs (this figures include all Central Government employees including Defence employees)

Hence the additional expenditure towards allowances will not financially impact the Central Government as already 70% of the 7th CPC expenditure has been borne out by the Government, only additional expenditure of just around 30% that is Rs 30,000 crores has to be met by the Central Government. even if 7th CPC report is fully implemented the expenditure towards pay and allowances shall not exceed 10% of the total revenue We hope the Government understands the sentiments of the Central Government employees and announce the revised allowances immediately after the arrival of the Honorable Finance Minister from his official tour to US and Russia, which he is expected to return from foreign assignments on 27th April 2017.

Comradely yours

(P.S.Prasad)
General Secretary

Source: http://karnatakacoc.blogspot.in/

Committee on Allowances of 7th CPC : 3rd Reply in Parliament on 24.3.2017

Committee on Allowances of 7th CPC : 3rd Reply in Parliament on 24.3.2017

In Lok Sabha on 24th March 2017, the Minister of State for Finance Shri Arjun Ram Meghwal explained in written form to various questions regarding the submission of report of Committee on Allowances.
Already two times (10th March and 22nd March) replied in the Parliament about this issue and the same type of answer given by the minister on 24th March also.

"The Committee on Allowances has been constituted vide order dated 22.07.2016. The Committee is to examine and make recommendations as to whether any changes in the recommendations of the 7th CPC relating to allowances are warranted and if so, in what form.

The Committee has received a large number of demands on allowances and even now receives demands in this regards. All the demands have been diligently examined. The Committee has already held 13 meetings so far and interacted with the representatives of Central Nodal Ministries, National Council (Staff Side), Joint Consultative Machinery (JCM) and officers and representatives of employee associations of Ministry of Health and Family welfare, Home Affairs, Railways, Defence and Department of Posts.

The Committee has taken more time than was initially prescribed in view of the large number of demands received. The Committee is now in the process of finalizing its Report.

Decisions on implementing the Report will be taken after the Report is submitted by the Committee."

Authority: Lok Sabha

7th Pay Commission : Committee on Allowances likely to submit report today - HRA Revision expected

7th Pay Commission : Committee on Allowances likely to submit report today - HRA Revision expected

After much debate and protest by government employees on some of recommendations made by the 7th Pay Commission on allowances, the government had formed a committee to review the same.

Government employees have been waiting to hear from the central government on allowances since the cabinet cleared the recommendations of the 7th Pay Commission in June last year.

The Committee on Allowances, headed by Finance Secretary Ashok Lavasa, is expected to present its review report to Finance Minister Arun Jaitley today.

The 7th pay commission had recommended reducing the house rent allowance (HRA) to 24 per cent of basic pay as against the 30 per cent of basic pay employees were drawing under the Sixth Pay Commission.
According to some reports, the Committee on Allowances has recommended the current HRA slab, which is 30 per cent of basic pay, for metros. An announcement on the same is expected soon.

Allowances form a significant chunk of government employees’ salary, and therefore when the pay commission recommended slashing some while merging others, protests erupted.

The 7th Pay Commission recommended abolishing 53 of the current 196 allowances meant for employees while merging a few others.

The pay commission’s recommendation of a 14.27 per cent hike in basic pay is the lowest in 70 years. A further reduction in allowances meant earning the ire of nearly 50 lakh Central government employees.
Though the report may be submitted today, “A decision is likely to be announced after the State assembly elections get over,” said a senior official. The entire exercise of State polls will get completed by March 11.
Sources indicated that the committee has recommended higher house rent allowance could be increased to offset the higher cost of living.

However, the revised structure for allowances is likely to be implemented from April 1, to ensure that it does not have any impact on the government's finances this fiscal.

An official said the impact of the higher allowances has already been factored in the Union Budget 2017-18, which has increased the allocation for allowances (other than travel expenses) by seven per cent.

Source: India Today