Saturday 12 December 2015

Bhuvan Indiapost Geo Tag App Operating Procedure

Bhuvan IndiaPost App is a user-friendly mobile application which enables to collect and report for geo-tagged of Post Office information on various parameters such as type of post office, name, services offered, delivery status, PIN-code and address. This mobile app will provide a platform for controlled crowd sourcing to build spatial database on Bhuvan Geo-platform.

For direct download type URL: 

For visualisation and download option type URL: 

The Internet connectivity is not required during data collection process. The internet connection through GPRS or 3G or 4G or wi-fi is necessary only to upload the data collected on Bhuvan IndiaPost Server. 
The user is advised to ensure GPS is switched-on with high accuracy before opening the app.
When the app is opened for the first time, the user is expected to fill his/her profile details. The details provided will be used only for the purpose to identify the source of data and will not be shared with anyone. 
The details required to be entered under "Profile" are 
  1. User ID (Any ID of your choice), 
  2. Your Name with designation. 
  3. Your Mobile Number and 
  4. Your Organisation and Place. 
After entering all the details, tap on "Save" and the app will take you to home page automatically.


The step by step procedure for using the app is given below. The main tasks in this app are 
  1. Collecting location information using GPS , 
  2. Taking photograph of the location (two photos), 
  3. Adding additional information about the location and 
  4. Sending the collected information to Bhuvan IndiaPost server, either immediately or later.

Instructions

Step 1. Stand over or front of the post office building (Open to Sky), check for GPS accuracy notification on the top. When the accuracy value is less than 10 m and stable (not fluctuating), tap the "GPS" icon to collect the location (Latitude and Longitude) details in the background. A confirmation window pops-up with GPS accuracy. Tap "OK" if the accuracy is acceptable, otherwise tap "Cancel" to cancel the collection of location data and wait for some more time to get better GPS accuracy. 
Ensure that there is a clear sky view for receiving GPS satellite signals.
Step 2. The app has provision to capture and upload two photographs of the location. Tap the "Photo" icon to activate your mobile camera for taking photographs. Capture first photograph of the post office from the road. Tap on "Photo" icon again to take the second photograph. The second photo must represent facilities inside the post office.
You can preview the photographs taken by tapping the "Preview" icon that appears below the "Photo" icon. Provision to enter text about the photographs.
Step 3. The user is expected to upload additional information about the location by tapping "Attribute" icon. The information such as post office, its name, services offered, delivery status, PIN-code and address, etc or any other related description about the post office can be uploaded using this option. 
.
Step 4. Once the user is satisfied with the information collected and ready for uploading the information to Bhuvan IndiaPost server, user may tap the "Send" icon to upload all the information collected immediately. User is advised to ensure that mobile data is switched-on before tapping the "Send" icon. The User is advise to wait till for confirmation message appears "Data sent successfully".
Step 5. In case of non-availability of Internet connectivity, the user is advised to tap "Save" icon. This will store the information collected in the mobile itself. Once the Internet connectivity is established, user may follow Step 6 to upload the data to Bhuvan IndiaPost server. The Wi-Fi facility of Internet modem (like BSNL at home or office) can also be used to connect for internet facility in the mobile.
Step 6. In order to upload the saved data to Bhuvan IndiaPost server, user is advised to tap "Manage" icon. Then tap "Send Later" icon. This will list the data collected and stored in the mobile. Select the data that needs to be uploaded and then tap "Send" icon to upload the data to Bhuvan IndiaPost server. Wait for confirmation message "Data sent successfully" appears once the upload is successful.

Managing your data :

The app provides facility for the user to manage the data uploaded by the user. User can view the sent data and also view any data that failed to upload. This will enable user to upload the data again by tapping "Sent Failed" icon. Users may note that there is provision to edit attribute value in "Send Later" and "Sent Failed" options.
User can also view or edit the profile information by tapping "Profile" icon.

To exit from the software, tap "Exit" icon.

Source : SA Post blog
FDCapp - Bhuvan IndiaPost version 1.3

Financial Impact on Employees Under National Pension Scheme (NPS)

The National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers under NPS. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below: 


• NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz, pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and annuity service providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interests of subscribers of NPS. 

• Dual benefit of low cost and power of compounding – The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world. 

• Tax Benefits – The tax benefits are available to the NPS subscribers under the provisions of the Income-tax Act, 1961. These were further increased in the Finance Bill, 2015. 

• Transparency and Portability is ensured through online access on the pension account by the NPS subscribers, across all geographical locations and portability of employments. 

• Partial withdrawal – subscribers can withdraw upto 25% of their own contributions before attaining superannuation age, subject to certain conditions. 

Some representations have been received from certain quarters against the implementation of the NPS. The main demand in these representations is that NPS may be scrapped and the Government may revert to old defined benefit system. But the Government does not propose to reimplement the old pension scheme by doing away with NPS. 

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.


Source : PIB Release, 11.12.2015

Monday 7 December 2015

Process to examine the recommendations made in the report of the 7th CPC for ASPs and IPs

House Rent Allowance (HRA)-7th Pay Commission Analysis and Recommendations

Presently, HRA is payable at the following rates:
Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX30
50-5 IakhY20
Below 5 lakhZ10
There are a large number of demands for paying HRA as a percentage of (Basic Pay + DA), instead of as a percentage of Basic Pay alone, as at present. Representations have also been received regarding enhancement of percentage rates and having only two classifications of Metros and Non-metros (instead of the present classification of X, Y and Z cities).

5 PBORs of uniformed forces have vehemently argued for doing away with the concept of Authorized Married Establishment and the requirement of a minimum age of 25 years for grant of Compensation in Lieu of Quarters (CILQ).

Commission recommends that HRA

should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. However, the Commission also recognizes that with the current formulation, once the new pay levels are implemented, the compensation towards HRA will remain unchanged until such time as the pay and allowances are next revised. Going by the historical trend this event is likely to be a decade away. Some representations have been received stating that towards the later part of the ten year period the HRA compensation falls considerably short of the requirement. Having regard to this, the Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to30 percent, 20 percent and 10 percent when DA crosses 100 percent.

Commission recommends that HRA

Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX24
50-5 IakhY16
Below 5 lakhZ8

HRA when DA crosses 50%

Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX27
50-5 IakhY18
Below 5 lakhZ9

HRA when DA crosses 100%

Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX30
50-5 IakhY20
Below 5 lakhZ10
Source:  PoTools blog

MACP for Non-Gazetted Administrative Posts

MACP for Non-Gazetted Administrative Posts
One of our reader Mr.Amit writes to us regarding the MACP scheme for non-gazetted administrative posts…
The MACP for non-gazetted administrative posts should be changed into Promotional Basis ATLEAST ONE POINT OF TIME AT THE LEVEL FROM GROUP-B NON-GAZETTED POST TO GROUP-B GAZETTED POST instead of just increase in grade pay. Many seniormost employees who have already put more than 20, 30, 40 years, because of non-availability of vacancy, they are still in the same designation (that means in the non-gazetted post only) by getting only minimum increase in the grade pay and retire without getting promotion to the next higher position in the gazetted post even though they are eligible for promotion to the gazetted level post. In a same group of employees, some will get regular promotion very early when vacancy arises and the remaining will be in non-gazetted post only for so many years for getting the promotion and some will retire from the same post cursing their fate and the government.
PENSION CALCULATORS FOR CG PENSIONERS
Hence, it is required that those who have completed minimum residency period in the present post, or ATLEAST THOSE WHO HAVE COMPLETED 20 YEARS OF REGULAR SERVICE FROM THE DATE OF PRESENT POST (I.E., FROM THE DATE OF BECOMING ASSISTANT/SR.STENOGRAPER IN GROUP-B NON-GAZETTED POST) they should be given promotion under MACP from Group-B Non-Gazetted Level to Group-B Gazetted Level.
If 7th CPC and the government agrees for change of MACP system into promotional basis, its effective date, Commission’s / Government’s FOREMOST DUTY IS TO PROTECT THE SENIORS FIRST. THAT MEANS, THE SENIORS SHOULD BE GIVEN PROMOTION FIRST, THEN ONLY THE JUNIORS SHOULD GET PROMOTION. OTHERWISE, JUNIORS WILL GET PROMOTION TO THE NEXT HIGHER POST FROM THE DATE OF EFFECT OF MACP IN 7TH CPC AND THE SENIORS WILL BE IN THE SAME OLD DESIGNATION. Already the seniors are not benefitted in 6th cpc, atleast they should be benefitted by getting promotion BEFORE THE JUNIORS GET.
THIS HAS TO BE TAKEN CARE BY ALL THE FEDERATIONS, 7TH CPC AND THE GOVERNMENT.
Source:  7th Pay Commission News

7th CPC CGEGIS : Illogical recommendation of 7th CPC

Ridiculous recommendation of 7th CPC regarding CGEGIS
As per the recommendation of seventh CPC, subscription and insurance amount have been increased manifold. Let’s discuss the same as per available data.
CGEGIS-2
The present rate of monthly deduction is Rs 120, Rs 60 and Rs 30 for Gr A, B and C employees with Insurance cover of Rs 1,20,000, Rs 60,000 and Rs 30,000 respectively.
The suggestion of increased insurance cover is a very good one which nobody will oppose. But the question is whether the amount of monthly deduction prescribed is at all justified ? Let’s have a quick look on fact and figures.
PENSION CALCULATORS FOR CG PENSIONERS
Out of the monthly deduction under this scheme, 70% goes to a savings part which is refundable and 30% goes to insurance fund for providing life cover. In the proposed structure, take for example the second category where monthly deduction is Rs 2500 for insurance cover of Rs 25 Lac. in this case yearly go out to non refundable insurance fund is Rs 9000 (30% of 30,000). If a 25 year new entrant purchase a Term Policy of Rs 25 Lac for 35 year term period, his yearly premium will be only Rs 5095 (including service tax). Then why should he shell out Rs 9000 ?
It may be beneficial for older ones, like for example a 50 year old person will have to pay Rs 15,057 for Rs 25 Lac insurance cover for 10 years. Click here to view LICI website.
So the rates of monthly deductions should be fixed in more rationalized manner taking account of variable age groups and depending upon the incumbents age the premium (monthly deduction in this case) should be calculated as done in the premium calculation of any insurance company.
Hope, Govt. will seriously look into this suggestion before implementing the same.
Click here to know more about Term Insurance.

7th Pay Commission Recommendations on Leave and Holidays

7th Pay Commission Recommendations on Leave and Holidays
7th CPC Leave Rules :  7th Pay Commission has recommended on Holidays and Leave for Central Government Employees and Offices…
Holidays and Leave : Presently Central Government offices observe a five-day week which results in 104 holidays every year on account of weekends. In addition, there are three National Holidays, fourteen Gazetted Holidays and two Restricted Holidays. Further, civilian government
employees are entitled to 8 days’ Casual Leave, 20 days’ Half Pay Leave (commutable to Medical Leave) and 30 days’ Earned Leave. Besides the above, quite a few other types of leave are admissible.
The following paragraphs bring out, in alphabetical order, the different kinds of holidays and leave admissible, demands received (if any) and views of the Commission on each one of them. Unless otherwise stated, the existing terms and conditions regulating these holidays and leave shall remain unchanged.
Casual Leave (CL) : Casual Leave is granted to enable a government servant to attend to sudden/unforeseen needs/tasks. Presently 8 days CL is normally granted to a Central Government employee per calendar year. The number goes up to 10 days for Industrial Workers, 20 days for Defence
Officers and 30 days for Defence PBORs. Certain other categories of staff, particularly in the Railways, are granted CL ranging from 11 to 13 days in a year. Demands have been made to increase the number of CL to 15 days for Industrial Workers and 12 days for other employees. CAPFs have also sought parity with defence forces in matters of Casual Leave.
Analysis and Recommendations : Regarding the number of Casual Leave, the Commission is of the view that the present system is working well and need not be altered. As far as the case of CAPFs for parity with defence forces is concerned, the Commission notes that CAPFs are essentially civilian forces and their service conditions are different from defence forces. Hence parity in terms of number of casual leave cannot be considered. To sum up, status quo is recommended.
Child Adoption Leave : This leave is granted to female employees, with fewer than two surviving children on valid adoption of a child below the age of one year, for a period of 135 days immediately after the date of valid adoption.
Analysis and Recommendations : No demands have been received regarding this leave. Accordingly, status quo may be maintained.
Child Care Leave (CCL) : Child Care Leave (CCL) is granted to women employees for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age). There are several demands relating to CCL which include converting
the same into “family care” leave, extending the facility to male parents and many representations stressing that it should be extended at least to single male parents. Suggestions have also been received that in cases where the child is differently abled, the clause stipulating that the child should be minor, should be done away with. Single mothers have highlighted their unique problems and requested the Commission for liberalising the grant of CCL. Interestingly, representations have also been made for discontinuance of the CCL, primarily on the grounds that it disrupts office working and also because it promotes gender discrimination.
Analysis and Recommendations : When CCL was first introduced by the VI CPC it generated considerable interest as it represented a positive measure benefiting women employees. It also took a while to stabilise and it is seen that as many as five amendments/clarifications were issued within a short period of time. As it stands, it is meant for women employees “for taking care of up to two children whether for rearing the children or looking after their needs like examination, sickness etc.” It is treated akin to Earned Leave and is sanctioned as such. It may not, however, be granted in more than three spells in a calendar year.
In the first two years of its implementation the experience was that women employees tended to treat this as Casual Leave or an extension of the same, and the resultant frequent absences caused disruptions at work. To address this, in September 2010, a clarification was issued stipulating that CCL may not be granted in more than three spells in a calendar year and also that it may not be granted for less than 15 days at a time. However, the latter stipulation was subsequently withdrawn and as per the latest clarification issued on 5 June, 2014 the government has decided to remove the requirement of minimum period of 15 days CCL. It has been brought to the notice of the Commission that the capping of maximum three spells in a
calendar year has, to some extent, addressed the problems relating to disruption of work.
Notwithstanding that, in the course of discussions with various stakeholders, the sense that has come across is that what was introduced as a welfare measure to help employees in times of need, is seen as a benefit that has to be availed simply because it exists. There is, therefore, a palpable need to bring in some inhibiting feature so as to ensure that only genuinely affected employees avail of this scheme. Towards this end the Commission recommends that CCL should be granted at 100 percent of the salary for the first 365 days, but at 80 percent of the salary for the next 365 days. In making this recommendation the Commission has also kept in mind the fact the concept of a paid (whether 100% or 80%) leave solely for child care for a period of two years, is a liberal measure unmatched anywhere else.
The Commission notes that in the event a male employee is single, the onus of rearing and nurturing the children falls squarely on his shoulders. Hence extension of CCL to single male parents is recommended. Moreover, the Commission recognizes the additional responsibility on the shoulders of employees who are single mothers.Accordingly, it is recommended that for such employees, the conditionality of three spells in a calendar year should be relaxed to six spells in a calendar year.
Commuted Leave : Presently, Commuted Leave not exceeding half the amount of half-pay leave due can be taken on medical certificate. A demands have been made to do away with the need for medical certificate.
Analysis and Recommendations : The Commission does not find merit in the demand. Status Quo is recommended.
Earned Leave (EL) or Leave on Average Pay (LAP) : Presently 30 days EL per annum is granted to Civilian employees and 60 days to Defence
personnel. EL can be accumulated up to 300 days in addition to the number of days for which encashment has been allowed along with LTC. Suggestions have been made to increase the accumulation to 450 days, allow encashment of 50 percent of the accumulated EL after 20
years of service and delink encashment of leave from LTC. A novel concept of “gifting” has been put forward, wherein employee should be allowed to ‘gift’ certain number of days of leave to one’s spouse or one’s colleague. “Vacational” staff like teachers, principals, etc. have demanded restoration of 10 days EL, which was changed to 20 days Half Pay Leave by VI CPC.
Analysis and Recommendations : In many organizations, employees are encouraged to take leave on the premise that it revitalizes them and is beneficial for the organization in the long run. Such a system is not prevalent in the government sector in India, but substituting leave with cash is also not desirable. Hence, no change in encashment guidelines is recommended.
The Commission recognizes that Earned Leave is, as the name suggests, earned by an employee through the services rendered. Hence, it is personal to the employee and the concept of “gifting” cannot be considered. The demand of “Vacational” staff can, however, be agreed to. Hence, it is recommended that “Vacational” staff be granted 10 days EL in place of 20 days Half Pay Leave. Other than this no other change is recommended.
Extra Ordinary Leave (EOL) : EOL is granted to a government servant when no other leave is admissible or when other leave is admissible, but the government servant applies in writing for extraordinary leave. This leave is neither debited to leave account nor is any leave salary paid. No demands have been received regarding this leave. Accordingly, status quo may be maintained.
PENSION CALCULATORS FOR CG PENSIONERS
Furlough Leave : This leave is admissible only to defence officers for up to 60 days. It can be availed at half pay, once in a cycle of three calendar years. No demands have been received regarding this leave. However, the Commission is of the view that Furlough Leave is a legacy of the pre Independence era. Since defence officers are already entitled to double the Earned Leave and more than double the Casual Leave available to civilian employees, there is no justification for continuation of Furlough Leave. Hence, it is recommended that Furlough Leave be abolished.
Half Pay Leave (HPL) or Leave on Half Average Pay (LHAP) : Presently, government employees are entitled to 20 days of Half Pay Leave for each completed year of service, credited @10 days on the 1st of January and 1st of July every year. There are representations that encashment of HPL should be allowed at the time of superannuation.
Analysis and Recommendations : The demands lack merit. Elsewhere in the report it has been recommended that 20 days HPL granted to “Vacational” staff be converted into 10 days EL. Hence, HPL will henceforth not be available to them. No change other than this is recommended.
Hospital Leave : This leave is granted to Group `C’ Railway employees if they are suffering from illness or injuries directly due to risks incurred in the course of official duties, on production of medical certificate. Full pay is admissible for first 120 days and half pay thereafter. The leave may be combined with any other kind of leave due and admissible, provided total period of leave does not exceed 28 months. Demands have been received to increase this leave to an unlimited period of time as applicable to PBORs of defence forces.
Analysis and Recommendations : This has been discussed under Special Disability Leave
Leave Not Due (LND) : LND is granted when the employee has no half-pay leave at credit and he/she requests for the grant of Leave Not Due. It is granted only on medical certification, if the leave sanctioning authority is satisfied that there is a reasonable prospect of the employee returning
to duty on its expiry. LND during the entire service is limited to a maximum of 360 days and will be debited against the half-pay leave that the employee may earn subsequently.No demands have been received regarding this leave. Accordingly, status quo may be maintained.
Maternity Leave : Maternity leave is granted to women government employees–up to 180 days for pregnancy and 45 days in the entire service for miscarriage/abortion. Maternity leave can be combined with any other leave upto two years without medical certificate. The Commission has received representations for enhancement of Maternity leave to 240 days with full pay and further 120 days with half pay.
Analysis and Recommendations : It is noted that Maternity Leave was raised from 135 days to 180 days and ‘period in continuation’ raised from 1 year to 2 years by the VI CPC. No further increase is warranted. Status quo is recommended.
Paternity Leave : Presently, a male employee with less than two surviving children may be granted Paternity Leave for a period of 15 days during the confinement of his wife, up to 15 days before or six months from the date of delivery of child. Paternity leave may also be granted to a
government servant with less than two surviving children on valid adoption of a child below the age of one year, within a period of 6 months from the date of valid adoption. There are demands to increase the period to 30 days.
Analysis and Recommendations : Present dispensation of 15 days is adequate. Status quo may be maintained.
Sick Leave : This leave is admissible to defence personnel only on account of sickness attributable/ aggravated due to service conditions. Full pay is granted for the entire duration of hospitalization. Beyond that, defence officers are allowed Sick Leave with full pay and allowances for first six months and fully pay only for next 18-24 months, while there is no such  limit for PBORs. There are demands from CAPFs for complete parity with defence forces in respect of provisions of Sick Leave.
Analysis and Recommendations : Discussed under Special Disability Leave.
Special Casual Leave (SCL) : SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings, etc. Full pay is granted during SCL and it can be sanctioned with retrospective effect also. There are demands to extend SCL to organ donors till the time they are fit to resume duty.
Analysis and Recommendations : The Commission would like to express its concern at the widespread use of SCL as a means of getting away from duty. However, because of the extensive scope and case specific nature of this leave, no concrete recommendations can be made. The government may, however, consider the following suggestions:
1. Review the purposes for which SCL is presently granted.
2. Limit the number of purposes for which an employee can be granted SCL in a year.
3. Limit the total number of days that an employee can be granted SCL in a year.
Special Disability Leave : It is admissible to civilian employees when disabled by injury intentionally or accidentally inflicted or caused by or in consequence of the due performance of official duties or in consequence of official position held. Full pay is admissible for the first 120 days and half pay thereafter. The leave may be combined with any other kind of leave due and admissible, provided the total period of leave does not exceed 24 months. There are demands to remove the ceiling limit of 24 months–the duration of leave may be left to the discretion of doctor and full pay paid for the entire period.
Analysis and Recommendations :  There are three different kinds of leave admissible to civilian/defence employees which are granted for work related illness/injuries–Hospital Leave, Special Disability Leave and Sick Leave. It is an established worldwide practice that employees who suffer illness/injuries that are attributable to/aggravated in the course of their duty need to be adequately compensated. However, due to the inherent difference between the nature of duties of civilians and uniformed forces, a distinction needs be made in the level of compensation provided. Having said that, there is some similarity in the risks faced by different uniformed forces, and consequently parity amongst them may be considered as far as this leave is concerned.
The following is, therefore, recommended:
1. Hospital Leave, Special Disability Leave and Sick Leave should be subsumed in a new Leave named Work Related Illness and Injury Leave (WRIIL).
2. Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
3. Beyond hospitalization, WRIIL will be governed as follows:
a. For Civilian employees, RPF employees and personnel of Police Forces of Union Territories: Full pay and allowances for the 6 months immediately following hospitalization and Half Pay only for 12 months beyond that. The Half Pay period may be commuted to full pay with corresponding number of days of Half Pay Leave debited from the employee’s leave account.
b. For Officers of Defence, CAPFs, Indian Coast Guard: Full pay and allowances for the 6 months immediately following hospitalization, for the next 24 months, full pay only.
c. For PBORs of Defence, CAPFs, Indian Coast Guard: Full pay and allowances, with no limit regarding period.
4. In the case of persons to whom the Workmen’s Compensation Act, 1923 applies, the amount of leave salary payable under WRIIL shall be reduced by the amount of compensation payable under the Act.
5. No Earned Leave or Half Pay Leave will be credited during the period that employee is on WRIIL.
Study Leave : Presently, Study Leave may be granted to all government employees with not less than five years’ service for undergoing a special course consisting of higher studies or specialized training in a professional or technical subject having a direct and close connection with the sphere of his duties as a civil servant. It is limited to 24 months, except for CHS officers who are allowed 36 months. No demands have been received regarding this leave. Accordingly, status quo may be maintained.
Source:http://7thpaycommissionnews.in/7th-pay-commission-recommendations-on-leave-and-holidays/

Govt not worried about fiscal deficit but 7th Pay Commission burden to stay for 2-3 years: Jaitley

Govt not worried about fiscal deficit but 7th Pay Commission burden to stay for 2-3 years: Jaitley

New Delhi: Finance Minister Arun Jaitley today said he was not worried about fiscal deficit and government would be able to meet its target despite additional outgo towards the implementation of the 7th Pay Commission.

He admitted however that the impact of implementing the pay commission's recommendations, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.

"I am not particularly worried about the fiscal deficit target," he said while replying to questions on the impact of the recommendations on public finances at the HT Leadership Summit.

He further said that besides achieving the target, the government has also been able to improve the quality of fiscal deficit. The government proposes to bring down the fiscal deficit to 3.9 percent of GDP in 2015-16, 3.5 percent in 2016-17 and 3 percent by 2017-18.
"If you achieve a fiscal deficit by either cutting down expenditure or withholding tax returns, then you may strictly have statistical figure, but the quality of the fiscal deficit will always be suspected...we have concentrated on the quality of the fiscal deficit and we will probably be able to maintain it," he added.

As regards the impact of the Pay Commission award to Central government employees, Jaitley said the normal rule is that the expenditure on salary and pension should be 2.5 percent of the Gross Domestic Product.

The ratio will deteriorate in the initial years with the implementation, he said.

However, "...as the base of the GDP increases, by the third or the fourth year, the spikes come down and
(thereafter) you reasonably reach that 2.5 percent figure back... These pressures will be for the next 2-3 years," the minister said.

Jaitley expressed optimism that the economy would grow by 7.5 percent in the current fiscal and the rate would accelerate further in the coming years resulting in more revenues for the government.

Answering questions on rate cut on small savings scheme to bring them in line with the market rates, the Finance Minister said the government has to act "cautiously" with a sense of "political pragmatism".

Observing that even Reserve Bank Governor Raghuram Rajan publicly suggested cut in small savings rate, Jaitley said, "We as an elected government have to look at it, in addition to the economic principles, with a sense of political pragmatism, because there a lot of people who are depending on it.

"Some schemes were just launched, for instance the girl child scheme that gives the highest interest rate in the small saving scheme... (This was) to incentivise the people to invest in the name of the girl child. If after one year you immediately slash it down radically, (it) may not be very politically prudent...you have to move in that direction but you have to move a little cautiously."

"I am not particularly worried about the fiscal deficit target," he said while replying to questions on the impact of the recommendations on public finances at the HT Leadership Summit.

He further said that besides achieving the target, the government has also been able to improve the quality of fiscal deficit. The government proposes to bring down the fiscal deficit to 3.9 percent of GDP in 2015-16, 3.5 percent in 2016-17 and 3 percent by 2017-18.

"If you achieve a fiscal deficit by either cutting down expenditure or withholding tax returns, then you may strictly have statistical figure, but the quality of the fiscal deficit will always be suspected...we have concentrated on the quality of the fiscal deficit and we will probably be able to maintain it," he added.

As regards the impact of the Pay Commission award to Central government employees, Jaitley said the normal rule is that the expenditure on salary and pension should be 2.5 percent of the Gross Domestic Product.

The ratio will deteriorate in the initial years with the implementation, he said.

However, "...as the base of the GDP increases, by the third or the fourth year, the spikes come down and
(thereafter) you reasonably reach that 2.5 percent figure back... These pressures will be for the next 2-3 years," the minister said.

Jaitley expressed optimism that the economy would grow by 7.5 percent in the current fiscal and the rate would accelerate further in the coming years resulting in more revenues for the government.

Answering questions on rate cut on small savings scheme to bring them in line with the market rates, the Finance Minister said the government has to act "cautiously" with a sense of "political pragmatism".

Observing that even Reserve Bank Governor Raghuram Rajan publicly suggested cut in small savings rate, Jaitley said, "We as an elected government have to look at it, in addition to the economic principles, with a sense of political pragmatism, because there a lot of people who are depending on it.

"Some schemes were just launched, for instance the girl child scheme that gives the highest interest rate in the small saving scheme... (This was) to incentivise the people to invest in the name of the girl child. If after one year you immediately slash it down radically, (it) may not be very politically prudent...you have to move in that direction but you have to move a little cautiously."
PTI

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