Centre seeks States’ views on pay panel recommendations

The Union government has sought the views of the State governments on the recommendations of the Seventh Central Pay Commission that have been implemented with effect from January 1, 2016.

In a communication addressed to the State Chief Secretaries on Thursday, Joint Secretary in the Personnel Ministry, Jishnu Barua, said if no reply was received before August 3 it would be presumed that the State government concurred with the proposals relating to the revision of pay scales of the All-India Service officers. Though the concern of the Centre was limited to the issue of parity between AIS and other services, the States are bound to feel the impact of the Pay Commission’s recommendations.

There was no consensus among the three-member Pay Commission on the financial and career-related edge IAS officers have over those belonging to other services. A confederation representing officers of 20 civil services, including the IPS, have been demanding parity in pay and other benefits with IAS officers.

As a norm, most of the State governments, under pressure from the unions, adopt the Central Pay Commission recommendations though it imposes immense strain on their finances.

According to a study commissioned by the 7th Pay Commission and conducted by the Indian Institute of Management, Calcutta, eight States opted to switch expenditure to meet the additional demands during the implementation of 6th Pay Commission. Though 22 States found it to be an enormous strain on their finances, 12 showed remarkable resilience and got out of the fiscal stress within two years of completion of payouts.

The study has cautioned that if socially important revenue expenditures were squeezed and capital assets creation was suspended, the impact on the nation’s economy could be as adverse as in the earlier case, “perhaps even more.” The 7th Pay Commission in its report urged States to calibrate the speed and the extent of their own awards depending on their fiscal condition. “In the case of States that have been in chronic revenue deficit, there is no doubt that even the awards with the level of fiscal prudence of Seventh CPC will cause a fiscal strain. These States must cut their coat according to their cloth,” it said.