The Hindu Business Line : Hike in salary

The fact that the Government of India may increase the salary levels of its employees shortly by 20-30 per cent is a cause for concern. Such a step would immediately result in clamour for increase in the salaries and wages among State government employees and other public and private sector organisations.

This move would not only lead to cost-push inflation but also widen the divide between the organised sector of employees and those constituting the unorganised working class. Inevitably, this would intensify the disparity of income in the country and drive the poor to despair, particularly those living in the rural areas. As of now, a chunk of national income is cornered by a small segment of the population, who live in comfort. The so-called prosperity in the country is not real, as it is not shared by all. Suicide by the farmers indicates the intensity of the situation.

By catering to the requirement of the already well-paid government employees and initiating fiscal measures that largely benefit the affluent sections, the Government would invite social unrest. Instead, it should ensure that the needs of the millions of downtrodden and poor are fulfilled. It is sad that even the existing schemes of the Government to alleviate the problems of the poor and deprived do not reach them due to inefficiencies in implementation.

N. S. Venkataraman, e-mail

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