The Kerala Public Expenditure Review Committee has recommended the State government to adopt the Central pay revision pattern for State government employees too.
The committee which laid its fourth report for 2014-15 in the Assembly on Thursday said that “to reduce the frequency of fiscal shock on capital outlay and for overall fiscal stability of the State, the committee recommends introducing the Central pay revision to State employees, which should encompass the retirement age along with the pay and other allowances.”
The growth of salary and pension components are becoming a drag on the capital outlay for enhancing the economic growth of the State. Though the periodical revision is imperative, its negative fallout on capital outlay demands serious attention. While the salary and pension payments grew by 47.47 per cent in 2011-12, compared to the previous year, the capital outlay grew only by 14.54 per cent. This has had a bearing on the growth process of the State. In this context, the Central pay revision pattern would be suitable for the State, the committee says.
On liquor policy, the committee has recommended the government to evolve a “long-term policy at the earliest considering the fact that what is lost to this State in the form of liquor revenue will be gained by the neighbouring States, with the gain of only minimum anti-liquor effect among the citizens in the State.”
