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7th CPC (Pay Commission): Government Saved Rs 40,000 crore by Delaying Allowances Roll-out, Says Report

The report further claimed that the government used delaying tactics to save government's money not to pay arrears of allowances on the pretext of formation of 'Committee on Allowances'.

New Delhi, July 23: The Union Government recently accepted recommendations on higher allowances under 7th Pay Commission after which a large number of Central Government employees got hiked salaries. But some reports suggest that the government saved Rs 40,000 crore by the delay in the implementation of allowances.

According to The Sen Times, the delay in the implementation of allowances is chiefly because of the financial gains of the government while financial condition of the government is very sound. The report further said that the delay in the implementation of allowances has saved Rs 40,000 crore of Union Government.

The report further claimed that the government used delaying tactics to save government’s money not to pay arrears of allowances on the pretext of formation of ‘Committee on Allowances’ in June 2016, for examination of allowances as the 7th Pay Commission had the recommended abolition of 51 allowances and subsuming 37 other allowances out of 196.

The Union Government last month accepted few of the demands of Central Government employees over hike in allowance under the 7th Pay Commission but some reports suggest that a large fraction of employees are unhappy with the centre’s decision.

The employees union said that there is a widespread resentment against the “meagre” allowances hike implemented under the 7th Pay Commission and not get the arrears of the allowances. The Sen Times report further said that the government employees are annoyed with PM Modi government as a large number of central government employees were eagerly waiting for their allowances since last 18 months but they got deeply annoyed when they saw a little hike without any arrears.

Last month Finance Minister Arun Jaitley and the Union Cabinet stuck with the 7th Pay Commission’s recommendations on allowances and gave nod accordingly. The Narendra Modi government’s major contention is on the House Rent Allowance (HRA), which the unions demanded at the rate of 30 per cent, 20 per cent and 10 per cent of basic pay with arrears.

The ‘Committee on Allowances’ headed by Finance Secretary Ashok Lavasa submitted its final report to Finance Minister Arun Jaitley on April 27 and the Union Cabinet approved the recommendation on June 28, which came into effect from this month.

The committee led by Justice AK Mathur on 7th Pay Commission had submitted its report to Finance Minister Arun Jaitley in November 2015.

Read at:http://www.india.com/news/india/7th-cpc-pay-commission-government-saved-rs-40000-crore-by-delaying-allowances-roll-out-says-report-2343668/

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