Given the expectations of government employees about the 10{+t}{+h}Pay Revision Commission scales and the financial constraints of Andhra Pradesh State with greater population and lesser revenue than its counterpart Telangana, finalising pay revision may well be a challenge. With about 60 per cent of resources of the State at Rs. 92,000 crore - including State’s own revenue, receipts from Centre - going for salary and pension bills, Andhra Pradesh has a big gap between its income and expenditure.
While the State’s own revenue is about Rs.47,000 crore for 2014-15, its present salary and pension bill comes to Rs.54,000 crore. The State almost reached the borrowing limit under the Fiscal Responsibility and Budget Management norms.
With the next round of discussions between the employees’ associations and Group of Ministers slated for January 13, government proposes to present the realistic picture of its finances and hopes the employees will peg their demands to the reasonable limit. However, employees are expecting 10 to 15 per cent increase over the 27 per cent interim relief.
The Pay Revision Commissioner recommended 29 per cent final hike and that itself would impose an additional burden of Rs.3,500 crore on the exchequer and any further burden could push State to bankruptcy.
While government will have to take care of employees, it can’t afford to neglect capital expenditure to boost economic growth. One also should assess the burden on society while revising pay scales. The government employees were fairly insulated from inflation through DA neutralisation unlike those in unorganised sector. Sources also indicated that government would be seeking reciprocity from employees in terms of efficiency, productivity, delivery of service, punctuality and performance linked assessment while finalising pay scales.
Telangana is better placed compared to A.P. and can afford to pay little more but given its ambitious development and welfare programmes, it also has to strike a balance. But, sources say that difference in pay scales of two states can pose problems. After distribution of employees, if salary of employees allotted to one of the States goes down, it could lead to legal problems. Thus both the States may have to award uniform hike, sources added.
