The Hindu Business Line : AP to `finalise new staff pay structure soon'

THE State Government expects to finalise the new pay structure for Government employees within two months when the special committee constituted to submit the report comes out with its findings.

Addressing a press conference here on Wednesday , the Finance Minister, Mr K. Rosaiah, said the Government is keen to involve all employees' associations while taking a decision on the issue of Pay Revision Commission's (PRCs) recommendation.Three senior officials have been appointed to this committee to hold discussions with the employees' associations.

On the State's financial situation, Mr Rosaiah said that the Government on its part has to meet the targets set by the Twelfth Finance Commission report under revenue deficit and fiscal deficits. Unless this is achieved the State would loose the advantage of availing itself of huge benefits such as writing off Central loans.

The State Government will get a benefit of Rs 6,507 crore in case it manages to meet the targets set by the Finance Commission. Given the intricacies, the Government has decided to appoint an official committee to study the various aspects including, how to arrive at the savings in order to meet the additional financial expenditure that would arise on account of implementation of PRC recommendations, the Finance Minister said.

The Government has announced 8.5 per cent interim relief as a part of the PRC recommendations. This would mean an additional financial burden of Rs 850 crore on the State exchequer for 2005-2006.

Alongside this decision, the State had earlier announced Dearness Allowance

with effect from July 1, 2004 to January 1, 2005 on par with Central Government rates. This would entail total expenditure of Rs 365.39 crore. Further, the DA, to be paid for pensioners has been cleared and this would mean additional outgo of Rs 230 crore, Mr Rosaiah said allaying fears expressed by certain sections of employees.

Referring to various measures taken by the Government for the welfare of employees, Mr Rosaiah said a new housing policy has been introduced for Government employees. Covering issues relating to transfers, filling up of employees' vacancies, long- pending demands of the teaching fraternity and medical reimbursements, Mr Rosaiah said that these issues have been given utmost importance. In fact, medical re-imbursement has been hiked from Rs 1 lakh to Rs 1.40 lakh this year.

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AP to `finalise new staff pay structure soon'