Friday, September 20, 2013

Flash News: Central Govt hikes dearness allowance by 10%

Flash News: Central Govt hikes dearness allowance by 10%

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013

The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.
Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).
***

SC/VK
(Release ID :99506)
Source: PIB

Government approves 10% DA hike, to benefit 50 lakh central employees.

Government approves 10% DA hike, to benefit 50 lakh central employees.
The government today approved a proposal to hike dearness allowance to 90 per cent from existing 80 per cent, a move that would benefit about 50 lakh central government employees and 30 lakh pensioners.
“The Union Cabinet approved the proposal to increase dearness allowance to 90 per cent at its meeting here. The hike would be effective from July 1, this year,” a source said.
According to the source, the increase in DA to 90 per cent would result in additional annual expenditure of Rs 10,879 crore. There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA.
This is a double digit hike in DA after about three years. It was last in September, 2010, that the government had announced a hike of 10 per cent to be given with effect from July 1, 2010.
DA was hiked to 80 per cent from 72 per cent in April, 2013, effective from January 1, this year.
As per the practice, the government uses CPI-IW data for past 12 months to arrive at a number for the purpose of any DA hike.
The retail inflation for industrial workers between July, 2012 and June 2013 was used to compute the increase in DA.
Source: ECT
http://economictimes.indiatimes.com/news/economy/policy/govt-approves-10-per-cent-da-hike-to-benefit-50-lakh-central-employees/articleshow/22797390.cms

Central Government hikes dearness allowance to 90%

Central Government hikes dearness allowance to 90%
Release of additional instalment of Dearness Allowance to central government employees and Dearness Relief to pensioners, due from 1.7.2013
The Union Cabinet today gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013 at the rate of 10 percent over the existing rate of 80 percent.
The increase in DA to 90 percent would result in additional annual expenditure of Rs 10,879 crore. There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA.

Cabinet to take up stock-limit extension today

Cabinet to take up stock-limit extension today
The cabinet is meeting today to consider a proposal to extend stock holding limit on pulses, edible oils and oil seeds for one more year beyond September 30,2013 to ensure their availability and check prices.
A proposal to this effect was moved by the Food and Consumer Affairs Ministry.
The objective is to enable state governments to continue taking effective de-hoarding steps under the Essential Commodities Act, 1955 by fixing stock limits.
The Cabinet is also likely to approve a proposal to hike dearness allowance for government employees and pensioners to 90% from existing 80% of basic pay and house rent allowance. The move would benefit about five million central government employees and three million pensioners.
The hike would be effective retrospectively from July 1, this year.
Officials said the increase in DA to 90% would result in additional annual expenditure of Rs 10,879 crore on the exchequer. However, there would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA.
There would be a double digit percentage point hike in DA after about three years, due to rise in prices as reflected in the consumer price index for industrial workers. It was last in September, 2010, that the government had announced a hike of 10% to be given with effect from July 1, 2010.
DA was hiked to 80% from 72% in April, 2013, effective from January 1, this year.

Source: http://www.business-standard.com/article/economy-policy/cabinet-to-take-up-stock-limit-extension-today-113092000180_1.html

Extra special pay for government staff to participate in sport

Extra special pay for government staff to participate in sport
New Delhi: All central government employees who participate in national and international sporting events will get double the amount of existing special pay, between Rs 210 and Rs 1,000.
Such sportsmen will get a minimum of Rs 210, which may go up to Rs 1,000, as special pay in addition to their salary, according to an order issued today by the Ministry of Personnel.
“The personal pay will be related to the Grade Pay corresponding to the post against which the employee concerned had initially earned or will earn the personal pay,” it said.
The personal pay is to be granted from the first of the month following the month in which the sporting events are completed and will not count for any service matter like pay fixation on promotion, retirement benefit or Dearness Allowance or City Compensatory Allowance.
The decision was taken in order to motivate government employees to participate more in sports.
The revised rate are applicable prospectively from September 1, 2013, the order said.
Source: PTI

Shortly DA would cross 100 %. Once again, all allowances would enhance by 25%

Shortly DA would cross 100 %. Once again, all allowances would enhance by 25%

As per the information received, unlike previous time, decision on DA would be taken by Cabinet Committee Meeting without delay. Subsequent to release of AICPIN for the month of June by Labor Bureau, Finance Ministry would send for the approval of the Cabinet for final decision on DA. After obtaining the approval, Finance Ministry would release the specific orders procedurally for disbursement of money.

Additional DA will be paid along with the salary of this month.

The arrears for the month of July and August would also be paid. With the increase of DA by 10%, the total amount of DA would enhance and stay at 90%.

By next year, it would cross 100%. During that period, as pointed out in the 6th Central Pay Commission, certain allowances would enhance by 25%. But, that is not the expectations of the Central Government Employees. Their requirements are merger of DA with Basic Pay.

Towards this matter, Central Government has briefed on many occasions in the Parliament.

At present, Central Government is thinking of bringing change in the AICPIN calculation system. In which way, this would pose impairment can not be ascertained at present. Not only the Central Government Employees but also the State Government employees anticipate the announcement of increase of DA percentage. This has become an eager expectations of more than a crore of employees.

As per the last 5th Central Pay Commission recommendations, once the DA crosses 50%, that has to be merged with Pay. But it is a sorrowful affair that such type of recommendation is not made in the 6th Central Pay Commission.

Instead of this, the recommendation for enhancement of some allowances by 25%, given, which would not be sufficient.

The expectation of the Central Government Employees is merger of DA with basic pay once it crosses 100%.

Whether this expectation would materialize?

The allowances which are going to by hiked are as given below:

1. Children Education Allowance including Hostel Subsidy, etc.

2. Special Allowance

3. Cash Handling Allowance

4. Washing Allowance

5. Split Duty Allowance

6. Bad Climate Allowance

7. Special Compensatory (Remote Locality) Allowance

8. (a) All components of Daily allowance on tour,
    (b) Mileage Allowances for road and bicycle journeys on tour

9. Special Compensatory (Hill Area) Allowance

10. Special Comp. Scheduled Tribal Area Allowance

11. Project Allowance

12. Fixed Conveyance Allowance

13. Cycle Maintenance Allowance

14. Special Allowance for Child care for women with disabilities

15. (a) Advance for purchase of Bicycle
      (b) warm Clothing Advance
      (c) Festival Advance
      (d) Natural Calamity Advance

16. Desk Allowance

Source: http://employeesorders.com

Rotation of officials working in sensitive posts – CVC latest Order

Rotation of officials working in sensitive posts – CVC latest Order

 CENTRAL VIGILANCE COMMISSION
Satarkta Bhawan, G.P.O. Complex,
Block A, INA, New Delhi 110023
No.004/VGL/090/225553

Dated 11.9.2013
Circular No. 03/09/13

Subject : Rotation of officials working in sensitive posts – regarding.

Central Vigilance Commission and the Department of Personnel and Training have issued instructions for effecting rotational transfers of officials posted on sensitive posts. As per Commission’s instructions issued vide letter Nos. 98.VGL/60 dated 15.4.1999, 02.11.2001 and 004/VGL/90 dated 01.5.2008 and 04.01.2012 (for public sector banks) on this issue, it was prescribed that Ministries/ Departments/ Organisations and CVOs are to identify the sensitive posts and staff working in these posts and also ensure that they are strictly rotated after every two/three years to avoid developing vested interests.


2. The Commission in the superintendence of vigilance administration over the years has observed that such rotational transfers are not effected in many organisations due to which officials continue to remain the same posts for long periods. Such overstay and continuous posting afford scope for indulging in corrupt activities, developing vested interests etc. which may not be in the interest of the organisation. The Commission would, therefore, emphasis that periodical rotation of officials holding sensitive posts/jobs needs to be ensured. As such, officials should not be retained in the same place/position for long by the Ministries/Departments/PSUs/Banks/Organisations etc.

3. Heads/CVOs of all Departments/Organisations are advised to ensure strict compliance of the Commission’s guidelines and implement the same in letter and spirit. Further, the CVOs should specifically report the action taken indicating the number of officials rotated/transferred in the respective organisations in the Monthly Report of CVOs submitted to the Commission.

sd/-
(K D Tripathi)
Secretary
Source: www.cvc.nic.in
http://cvc.nic.in/cir_13092013.pdf

Model Recruitment Rules for the various posts in Official Language Cadre for Subordinate Offices

Model Recruitment Rules for the various posts in Official Language Cadre for Subordinate Offices
No. AB-14017/46/2011-Estt (RR)
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel and Training
New Delhi
Dated the 19th September , 2013
OFFICE MEMORANDUM

Subject: Model Recruitment Rules for the various posts in Official Language Cadre for Subordinate Offices.

The Model RRs for the posts of Hindi Officer, Senior Translator and Junior Hindi Translator in OL cadre issued by this Department have been reviewed in the light of 6th CPC recommendations.

2. After 6th CPC, Department of Expenditure in their OM dated 24.11.2008 and 27.11.2008 have clarified that similarly designated posts existing outside the Central Secretariat Official Language Service (CSOLS) Cadre in various subordinate officers of the Central Government have been granted the same pay scale as granted to CSOLS. The designation with pay scale for various posts in OL Cadre in the subordinate offices shall be as below.

Sr. No.  DesignationPay Scale 
 1 Jr.Translator PB-2 GP Rs.4200
 2 Sr.Translator P3-2 GP Rs.4600
 3 Asstt.Director(OL) PB-3 GP Rs.5400
 4 Dy. Director (OL PB-3 GP Rs.6600
 5 Jt.Director (OL) PB-3GP Rs.7600
 6 Director (OL) PB-4 OP Rs.8700

Accordingly, the revised Model Recruitment Rules for the same are enclosed as Annexure to this Office Memorandum.

2. Ministries / Departments may review the existing rules and notify the revised rules conforming to the Model Recruitment Rules. These may also be forwarded to all autonomous/ statutory bodies for adoption. The Ministry of Home Affairs is also requested to forward these Model RRs to the UT Administrations for appropriate action.

3.Hindi version will fallow.

Sd/-
(Mukta Goel)
Director (Estt.I)
Source: www.persmin.nic.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/AB-14017_46_2011-Estt_RR_19092013.pdf]

Ban on creation of posts, purchase of vehicles, cut in air travel, no change in LTC Air-travel entitlement etc. under economy measures

Ban on creation of posts, purchase of vehicles, cut in air travel, no change in LTC Air-travel entitlement etc. under economy measures

Lastest order on Expenditure Management - Economy Measures and Rationalization of Expenditure by FinMin

No.7(2)1E.Coord/2013
Ministry of Finance
Department of Expenditure

New Delhi, the 18th September, 2013

OFFICE MEMORANDUM
 
Sub: Expenditure Management - Economy Measures and Rationalization of Expenditure.

Ministry of Finance, Department of Expenditure has been issuing austerity instructions from time to time with a view to containing non- developmental expenditure and releasing additional resources for priority schemes. The last set of instructions was issued on 31st May 2012, 1st November 2012 and 14th November 2012. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. In the context of the current fiscal situation, there is a need to continue to rationalize expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect:-


2.1 Cut in Non-Plan expenditure:
For the year 2013-2014, every Ministry/Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and the Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed, shall be allowed during the current fiscal year.

2.2 Seminars and Conferences:
(i)    Utmost economy shall be observed in organizing conferences/
Seminars/workshops. Only such conferences, workshops, seminars, etc.
which are absolutely essential, should be held wherein also a 10% cut on
budgetary allocations shall be effected.
(ii)    Holding of exhibitions/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.
(iii)    There will be a ban on holding of meetings and conferences at five star hotels.

2.3    Purchase of vehicles:
Purchase of vehicles is banned until further orders, except against condemned vehicles.

2.4    Domestic and Foreign Travel:
(i)    All officers are to travel in economy class only for domestic travel, except officers in the Apex Scale who may travel in executive class. Officers may travel by entitled class for international travel, however officers in Apex scale may travel only by business class. In all cases of air travel, only the lowest fare air tickets of the entitled class are to be purchased/ procured. No companion free ticket on domestic/ international travel is to be availed of. The existing instructions regarding travel on Leave Travel Concession (LTC) would continue.

(ii)    It would be the responsibility of the Secretary of each Ministry/Department to ensure that foreign travel is restricted to most necessary and unavoidable official engagements based on functional necessity, and that extant instructions are strictly followed.

(hi) Where travel is unavoidable, it will be ensured that officers of the appropriate level dealing with the subject are sponsored instead of those at higher levels. The size of the delegation and the duration of visit will be kept to the absolute minimum.

(iv)    Proposals for participation in study tours, workshops/ conferences/ seminars/presentation of papers abroad at Government cost will not be entertained except those that are fully funded by sponsoring agencies.

(v)    Travel expenditure (including FTE) should be so regulated as to ensure that each Ministry remains within the allocated budget for the same. Re- appropriation proposals on this account would not be approved.

2.5 Creation of Posts:
(i) There will be a total ban on creation of Plan and Non-Plan posts.
(ii) Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.

3.    Observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/State/Local level:

3.1 Release of Grant-in-aid shall be strictly as per provisions contained in GFRs and in Department of Expenditure's OM No.7(1)/E.Coord/2012, dated 14.11.2012.
3.2 Ministries/Departments shall not transfer funds under any Plan schemes in relaxation of conditions attached to such transfers (such as matching funding).
3.3 The State Governments are required to furnish monthly returns of Plan expenditure — Central, Centrally Sponsored or State Plan — to respective Ministries/Departments along with a report on amounts outstanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.
3.4 The Chief Controller of Accounts must ensure compliance with the above as part of pre-payment scrutiny.


4.    Balanced Pace of Expenditure:
4.1 As per extant instructions, not more than one-third (33%) of the Budget Estimates may be spent in the last quarter of the financial year. Besides, the stipulation that during the month of March the expenditure should be limited to 15% of the Budget Estimates is reiterated. It may be emphasized here that the restriction of 33% and 15% expenditure ceiling is to be enforced both scheme-wise as well as for the Demands for Grant as a whole, subject to RE ceilings. Ministries/ Departments which are covered by the Monthly Expenditure Plan (MEP) may ensure that the MEP is followed strictly.

4.2 It is also considered desirable that in the last month of the year payments may be made only for the goods and services actually procured and for reimbursement of expenditure already incurred. Hence, no amount should be released in advance (in the last month) with the exception of the following:
(i)    Advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations.
(ii)    Any loans or advances to Government servants etc. or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds.
(iii) Any other exceptional case with the approval of the Financial Advisor. However, a list of such cases may be sent by the FA to the Department of Expenditure by 30th April of the following year for information.


4.3 Rush of expenditure on procurement should be avoided during the last quarter of the fiscal year and in particular the last month of the year so as to ensure that all procedures are complied with and there is no infructuous or wasteful expenditure. FA's are advised to specially monitor this aspect during their reviews.

5.    No fresh financial commitments should be made on items which are not provided for in the budget approved by Parliament.

6.    The instructions would also be applicable to autonomous bodies.

7.    Compliance
Secretaries of the Ministries/Departments being the Chief Accounting Authorities as per Rule 64 of GFR shall be fully charged with the responsibility of ensuring compliance of the measures outlined above. Financial Advisors shall assist the respective Departments in securing compliance with these measures and also submit an overall report to the Minister-in-Charge and to the Ministry of Finance on a quarterly basis regarding various actions taken on these measures/guidelines.


Sd/-
( R.S.Gujral )
Finance Secretary
Source: http://finmin.nic.in/the_ministry/dept_expenditure/notification/emre/ExpMan_EcoMeasure18092013.pdf

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