With various State services associations like– CANSSEA, NCSA, NSSA, FONSFSA, NPSA, NF&ASA and NASSA pressurizing the state government to implement the 7th Revision of Pay (RoP) w.e.f. Mar 1, 2017 (2017-18), the Finance department in its recommendations to the Cabinet dated February 22, 2017 came up with two possible options through which the RoP could be implemented with effect from March 1, 2017.
In its recommendation, ACS & Finance commissioner, Temjen Toy was of the opinion (option 1) that if the RoP was effected from 01.03.2017 and implemented during 2017-18 itself, the financial implication would be around Rs. 954 crore.
Out of this, an amount of Rs. 579 crore would be impounded to GPF and actual cash outgo would be around Rs. 375 crore. The second option was that if RoP was effected w.e.f. 01.03.2017 and implemented during 2018-19, the amount required would be Rs. 2011 crore as the arrears of 2017-18 would also have to be paid.
However, after impounding an amount of Rs. 1247 crore in GPF, the actual cash payment would be around Rs. 764 crore.
It said for both the options, the following would apply– increased salary due to the employees (other than those under New Pension Scheme) will be impounded to GPF in respect of the years 2017-18, 2018-19 and 2019-20.
In this regard, the impounded amount would not be factored for advance/withdrawal until 2020-21. Further, cash payment of increased salary will be made to the employees only with effect from 1.3.2020.
This was because the 14th Finance Commission had not provided resources for the next pay revision in its awards.
It was made also known that the state government had no means to pay the enhanced salary, since the projected expenditure of Rs. 375 crores was for employees under the New Pension Scheme.
A comparative chart for the above two options is given in the table below:
In this regard, it was proposed that the Revision of Pay and Pension may be implemented with effect from March 1 and paid from 2017-18 itself. This would enable the expenditure to be reflected in Finance Accounts of 2017-18 which would be considered by the 15th Finance Commission as the actual salary cost in its awards for the next five years. If not the Finance department was of the opinion that the State may not be in a position to implement the same even during the 15th Finance Commission period (2020-2025).
The proposal was accordingly submitted to the Cabinet for decision as to whether to implement Revision of Pay and Pension on the basis of 7th Central Pay Commission Report, with requisite modifications, with effect from– (i) Option- 1: 1st March 2017 and implemented in 2017-18; or (ii) Option-2 : 1st March 2017 and implemented in 2018-19.
In this regard, the Cabinet, as per the Agenda No. 14 on February 23, “approved in principle” the proposal of the Finance department for Revision of Pay and Pensions of the state government employees corresponding to the 7th Central Pay Commission. As reported, the Cabinet however agreed to decide the effective date of implementation in the next Cabinet meeting.
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