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Tamil Nadu
By Radha Venkatesan
However, the 12.5 lakh employees would have to wait till after their retirement to get the 60 per cent pay arrears pending for the last five years, that too in the form of small savings scrips. Making this announcement in his third State budget in the Assembly today, the Finance Minister, C. Ponnaiyan, appealed to the government employees to ``prepare themselves for austerity in expenditure''. The additional three per cent DA, to be paid from April 1 this year, would cost the cash-strapped Government Rs. 200.91 crores every year. As for the four per cent DA, announced from October 1 last year, the Government, instead of impounding one per cent in the General Provident Fund, would pay the entire amount in cash from April 1.
Three-point package
As for the 60 per cent arrears due, in the wake of acceptance of the Central Pay Commission recommendations by the previous DMK regime, Mr. Ponnaiyan said: ``It is very easy to make tall promises and not implement these promises.'' Insisting that it was ``impossible to pay the arrears'', which had mounted to nearly Rs. 1,800 crores, he said all development programmes would have to be abandoned to pay the arrears. Hence, the Government had come up with a three-point package as a ``good-will gesture''. Arrears on account of commutation for employees who retired between January 1 1996 and March 31, 1998 would be paid in three equal annual instalments with interest from the financial year 2003-2004. The arrears of their gratuity together with interest would be paid to the pensioners in the form of small savings scrips in three equal annual instalments over three years from 2003-2004. As for the pensioners who retired between January 1, 1996 and March 31, 2003, 60 per cent of the arrears of pay and allowances with interest would be blocked into a non-interest bearing account from April 1, 2003 and paid in the form of small savings scrips in three annual instalments beginning 2003-2004. As for those still in service, the 60 per cent pay arrears would be retained in a non-interest bearing deposit account from April 1, 2003 and paid at the time of retirement in the form of small saving scrips in three equal annual instalments.
Staff mobility
The Minister also indicated major administrative reforms to ensure mobility of employees. If there was need for staff in one department, it should be possible to retrain and reorient the surplus personnel in other departments. ``The adjustment process will be attempted in the coming financial year.''
Mixed reaction
The announcements were greeted with protests and praises from various government staff unions. In a statement, the Tamil Nadu Government Staff Association (C and D) hailed the government for announcing the three per cent fresh DA. The Tamil Nadu Government Employees Union, however, said it was ``regrettable'' that there was no mention of payment of the DA arrears with effect from January 1, 2002. The Tamil Nadu Pensioners Association, condemning the cut in pensionary benefits, said the Government had lost its ``credibility''.
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