April 24, 2017

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Allowances Committee Report and Financial Expenditure

Written By Admin on Apr 24, 2017 | April 24, 2017

                  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 reports.

Please refer the ANNUAL REPORT ON PAY AND ALLOWANCES OF CENTRAL GOVERNMENT CIVILIAN EMPLOYEES for 36 lakhs employees the year 2015-16 published in website http://finmin.nic.in/pru/BROCHURE/PayAllowance2015-16E.pdf.  The 36 lakhs employees include employees working in Ministry of Railways, Defence (civil)  , Ministry of Home , Ministry of Communications etc.  The Report prepared by PAY RESEARCH UNIT DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI.  Almost 85% of the total expenditure was incurred by five major Ministries/ Departments (Railways, Defence (Civil) Home Affairs, Post and Revenue) during 2015-16Of the total expenditure on Pay and Allowances in 2015-16, the Ministry of Railways continues to have the largest share i.e 34.98% , marginally decreased from 35.87% in 2014-15. Share of Ministry of Home Affairs has increased from 24.91% to 26.59% and department of Posts has been decreased from 8.26% to 7.74% . Share of Ministry of Defence (Civil) has increased from the previous year i.e. from 12.03% to 12.11%. Share of other departments has decreased from 18.93% to 16.31%.

  The total expenditure towards pay & allowances for 36 lakhsCentral 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 55162.69 crores (36.77%) , DA Rs 64304.33 crores (42.68%) , allowances constitute Rs 30561.55 crores  of which  HRA Rs  6225.14 crores  (  4.15% ) and.  Transport Allowance constitute Rs 6186.05 crores and other allowances 16.22% respectively.

Out of the total expenditure of Rs 6225.14 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 12,400 crore to 29,600 crore, an increase of17,200 (138.71%). This figure also includes an expenditure of ₹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.   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

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