Business Daily from THE HINDU group of publications
Tuesday, Aug 19, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Tuesday, Aug 19, 2008 ePaper | Mobile/PDA Version | Audio |
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Opinion
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Letters Bulging pay packets push up inflation The Independence Day bonanza for government employees seems to be a higher version of the Sixth Pay Commission’s recommendations. Though ten years have elapsed after the Fifth Pay Commission revision, the announcement comes at a time when the county is faced with a variety of problems. The present recommendations would involve an annual expenditure of Rs 17,798 crore and the backlog of arrears of Rs 29,373 crore. The minimum salary of a government servant will be Rs 10,000 at the entry level. These measures would certainly further push up inflation beyond the existing level of 12.4 per cent. The growth in GDP is expected to plummet to around 7 per cent. In such a scenario the pay revision may add further burden to the exchequer. At the same time around 250 million people in the country are below the poverty line and roughing it out throughout their lives, struggling in the most pitiable conditions. No one would say that the government servants should be denied a pay rise compatible with the requirements of a modern administration. But will this compensation package alone determine the quality of governance? While those in the organised private sector may get better compensation, there is also a concurrent check on their performance, while this is sadly lacking for the government sector. The payment of arrears should be staggered over a longer period to limit inflationary trends. A. R. K. Pillai Mumbai More Stories on : Letters | Human Resources | Economy
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