Rs1,200 cr burden for enhanced salaries

Tribune News Service

Shimla, June 29

The approval of the recommendations of the Seventh Pay Commission by the Centre could put an additional burden of Rs 1,200 crore on the fund-starved state government.

Himachal follows the Punjab pay scales pattern and awards the same scales to its employees. However, the Assembly polls due early next year in the neighbouring state, this figure (Rs 1,200 cr) could shoot up. There is a high probability that Punjab could announce a hike in salaries and allowances to its employees and pensioners over and above what the Pay Commission has recommended.

“In case we go by the recommendations by the Seventh pay Commission, Himachal will have to bear a burden of almost Rs 1,100 to Rs 1,200 crore annually,” said Srikant Baldi, Additional Chief Secretary, Finance.

However, going by the past experience, Punjab in a bid to woo the voters gives more than the recommendation of the Pay Commission. “Even if we go by very conservative estimates, we feel that the additional burden on account of this enhancement at an average of 23 per cent will put a burden of up to Rs 1,800 crore on us, which at this stage is a huge amount,” admitted officials of the Finance department.

Himachal has a strength of almost 2.25 lakh government employees which includes about 1.85 regular employees. The number of employees in various boards and corporations is about 45,000. The number of contractual employees, including a sizeabale number in the Education department stands at about 46,000.

The number of pensioners in Himachal presently is 1.55 lakh. The state government is footing the salary bill of employees which stands at Rs 8,700 crore annually. The amount that goes towards paying pensionary benefits to the retired employees is Rs 2,700 crore annually.