The interim relief of 17% under the 7th Pay Commission for State government employees, announced by the Government on Wednesday, March 1, has been estimated to cost the exchequer about ₹1,000 crore per month or about ₹12,000 crore annually. However, Government sources say that the burden could go up to ₹20,000 crore or even more annually, when the full-fledged recommendations of the pay commission are implemented.
The burden is expected to go up as about 3 lakh employees are in the local bodies, aided educational institutions and so on. Chief Minister Basavaraj Bommai has repeatedly insisted that ₹6,000 crore has been earmarked in 2023-2024 for implementation of pay commission recommendation.
Government employees at RTO, Yelahanka did not come for the work as a sign of protest demanding salary hike. | Photo Credit: Special arrangement
In 2022-2023, the expenditure on salary and pension is estimated to be about ₹41,288 crore and ₹24,016 crore, respectively, which is about 21.7% and 12% of the State’s total revenues. This is besides the grants in aid to meet salary and pension expenditure in aided educational institutions, local bodies and non-teaching staff in universities. State government employees constitute about 5.11 lakh employees and an estimated 3 lakh in other services.
Concerns expressed in MTFP
The mid-term fiscal plan has also raised concerns over the increasing expenditure on salaries and pensions, and pointed out that general services bill of the budget that includes salary and pension has gone up to ₹81,820 crore in 2023-2024 from ₹31,265 crore in 2016-2017.
In the election year, the State Government under pressure from the government employees, set up the 7th Pay Commission under the Chairmanship of former Chief Secretary Sudhakar Rao on November 19, 2022, the commission released a set of questionnaires on January 17, 2023. The pay commission has been asked to consider revision of pay scales of State government employees, employees of aided educational institutions and local bodies, and non teaching staff of universities. It has been specifically asked to examine the feasibility of adopting the Central pay structure.
The previous revision of pay for employees came in July 2017 on the basis of the 6th Pay Commission recommendations, which were implemented during 2018 with monetary benefits effective from April 1, 2018.
In the election year
The sense of urgency shown by the State Government employees in organising an indefinite strike is closely linked to Assembly elections that are round the corner. With the date of election to be announced any time now, which kicks in the model code of conduct, employees saw their last chance before the government to exert pressure. “Once the model code of conduct comes in nothing can be done. With elections ahead, this was the best opportunity to force the BJP government to announce the interim relief,” an office bearer of Secretariat Employees Association said.
