Provision for 7th Pay Commission in Budget 2015-16

Provision for 7th Pay Commission in Budget 2015-16

The Budget is also gravely silent on fund allocations for the Seventh Pay Commission award, due for implementation in 2016.  The budgetary documents are stressing upon likely burden from the report of the 7th Pay Commission.  However the funds are allocated for Commission'ss establishment.  The extract of budgetry documents which are related to 7th CPC are mentioned below:-

Speech of Finance Minister - Heading Fiscal Roadmap para 23:-

Budget  2015-2016

Speech  of

Arun Jaitley

Minister of Finance

February 28,  2015

Fiscal Roadmap

23. I want to underscore that my government still remains firm on achieving the medium term target of 3% of GDP.  But that journey has to take account of the need to increase public investment.  The total additional public investment over and above the RE is planned to be `1.25 lakh crore out of which `70,000 crore would be capital expenditure from budgetary outlays.  We also have to take into account the drastically reduced fiscal space; uncertainties that implementation of GST will create; and the likely burden from the report of the 7th Pay Commission.  Rushing into, or insisting on, a pre-set time-table for fiscal consolidation pro-cyclically would, in my opinion, not be pro-growth.  With the economy improving, the pressure for accelerated fiscal consolidation too has decreased.  In these circumstances, I will complete the journey to a fiscal deficit of 3% in 3 years, rather than the two years envisaged previously.  Thus, for the next three years, my targets are: 3.9%, for 2015-16; 3.5% for 2016-17; and, 3.0% for 2017-18.  The additional fiscal space will go towards funding infrastructure investment.

***

In document to study Medium Term Fiscal Policy Statement for further 3 years: Para 12:-

MEDIUM TERM FISCAL POLICY STATEMENT

12. However, it is pertinent to note that the resource base of the Centre will be constrained following the implementation of the FFC. With steep jump in the sharing pattern of tax revenues, the revenues of the States, which is surplus in most of the cases, will be further augmented on one side and the Centre will face resource crunch in one of the difficult phases of consolidation underway. While, the revenues are constrained in the FY 2015-16, it would continue over the medium term framework in FY 2016-17 and 2017-18.

Moreover, the 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will be also be spanning out in the period. Thus, in the medium term framework the fiscal position will continue to be stressed. However, with necessary corrections on the Plan side under the new paradigm of Centre-State fiscal relationship and reforms on the subsidies, with better targeting and policy initiatives, it is expected that over the medium framework much of the fiscal correction would have taken shape, leaving room for building up better fiscal management thereupon. The change is monumental; and needs dextrous manoeuvring in this initial phase.

(c) Pensions

42. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at ` 74,076 crore in RE 2013-14 and at the year-end it was accounted at ` 74,896 crore. In BE 2014-15, pension payment in nominal terms was estimated at ` 81,983 crore. In RE 2014-15, it has been revised at ` 81,705 crore. The pension payment of Central Government for the past few years has been growing faster than the salary expenditure. The main reason for this is that there is an increase in number of pensioners due to higher retirements and increased life expectancy. In view of the likely impact of VII Pay Commission, Pension payment of the Government likely to be about 0.7 per cent of GDP in FY 2016-17 and FY 2017-18 respectively

***

In document to study Medium Term Fiscal Policy Statement for further 2 years:

FISCAL POLICY STRATEGY STATEMENT

Expenditure Management Commission:

37. While Government has managed to control the expenditure through rationalization in the fiscal consolidation phase, quality of expenditure remains an area that needs to be addressed. The ongoing fiscal consolidation has been successful in taming the fiscal deficit; however there is still imbalance in the public finance on the revenue side. As discussed in earlier section, concerted efforts are required to accomplish the target set for the revenue deficit and effective revenue deficit in the new FRBM regime. This entails structural changes in the Plan spending and definitive measures to contain Non-Plan spending within sustainable limits. Moreover, in the medium term, award of VII Pay Commission and XIV Finance Commission pose significant downside risk to Public Finance. Thus, time has come to look into the places where Government spends money and output achieved from it. Government will constitute an Expenditure Management Commission, which will look into various aspects of expenditure reforms to be undertaken by the Government.

MEDIUM TERM FISCAL POLICY STATEMENT

(c) Pensions

39. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at ` 74,076 crore in RE 2013-14 and at the year end it was accounted at ` 74606 crore, marginally above the RE figure. In BE 2014-15, pension payment in nominal terms estimated at `81,983 crore. The pension payment of Central Government for the past few years has been growing faster than the salary expenditure. The main reason for this is that there is an increase in number of pensioners due to higher retirements and increased life expectancy. Accordingly, keeping past trend in view the Pension Expenditure of the Government has been projected to grow at 10.4 per cent in FY 2015-16. In view of the likely impact of VII Pay Commission, higher growth is assumed in FY 2016-17.

Details of funds allocated for Establishment of 7th CPC:-

(In crores of Rupees)

	Major Head	Actual 2013-2014			Budget 2014-2015			Budget 2015-2016			Revised 2014-2015
		Plan	Non-Plan	Total	Plan	Non-Plan	Total	Plan	Non-Plan	Total	Plan	Non-Plan	Total
Other Administrative Services
6. Seventh Central Pay Commission	2070	...	0.22	0.22	...	11.91	11.91	...	10.76	10.76	...	11.54	11.54

Grant of Night Duty Allowance on the basis of actual salary of 6th CPC

Grant of Night Duty Allowance on the basis of actual salary of 6th CPC

An All India Federation of Defence Workers, BPMS has published the message about the current status of Night Duty Allowance in Ordnance Factories.

Grant of Night Duty Allowance on the basis of actual salary of 6th CPC

Contempt Petition No. 200/2014 arising out of O.A. No. 2017/2014 Shri Arving Girija Sing & Ors Vs Union of India & Ors was heard by Hon’ble Mumbai Bench of CAT on 23.02.2015 and after hearing both sides Hon’ble CAT disposed of the Contempt Petition with an order to grant NDA as per revised rate within 03 months from the date of receiving the order. Further, CAT expressed that if required, a senior officer of O.F.Board should be deputed to the Ministry of Defence and Representative/Officer of MOD alongwith officer of O.F.Board should liaise with Ministry of Finance, Department of Expenditure to expedite the matter.

Since the period granted by Hon’ble CAT would expire on 23.05.2015, Secretary MOD has approved the proposal and the same has been vetted by FA (Def Fin) and now file is being sent to Min of Fin for concurrence so that CAT order may be implemented.

It is the status of the NDA as on 26.02.2015.

MUKESH SINGH
Secretary
01.03.2015

Pensioners Portal provides a platform for retiring Central Govt Employees to showcase commendable work done during service

Pensioners Portal provides a platform for retiring Central Govt Employees to showcase commendable work done during service

“Pensioners Portal is in the process to providing a platform for retiring Central Govt Employees to showcase commendable work done during serivce. It is envisaged that this would provide satisfaction to the retiring employee and also act as a motivator for serving employees. This would also be a wonderful opportunity to garner the resource of retiring employees for voluntary contribution to nation building post retirement. The retiring employee may submit a write-up, not more than 5000 words alongwith appropriate attachments where need be”.

‘Anubhav’ – showcasing outstanding work done during service – submission of details by a retiring Government employee – to be uploaded on Departmental website

No. 4/2/2013-P&PW (Coord.)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

Lok Nayak Bhavan, Khan Market,

New Delhi, the 19 th February, 2015

Office Memorandum

Sub: ‘Anubhav’ – showcasing outstanding work done during service – submission of details by a retiring Government employee – to be uploaded on Departmental website – reg.

The Department of Pension & Pensioners’ Welfare is in the process of providing a platform for the retiring Central Government employees to showcase commendable work done during service. It is envisaged that this would provide satisfaction to the retiring employee and also act as a motivator for serving employees. This would also be a wonderful opportunity to garner the resource of retiring employees for voluntary contribution to nation building post retirement. The retiring employee may submit a write-up, not more than 5000 words alongwith appropriate attachments where need be.

2. All Ministries/Departments are requested to inform retiring employees that they may, voluntarily, submit the details in the enclosed Form alongwith Form 5 of CCS (Pension) Rules, 1972.

3. It may be noted that –

(a) Since most successful ventures would have contributions of the entire team, retiring persons may indicate names of other members of the team in the writeup.

(b) Any work that has contributed to the efficiency, economy and effectiveness in government functioning or / and any innovation which led to improved work culture or any other contribution considered significant by the retiring employee may be submitted.

(c) Comments which are religious or political in nature (or gender based or based on caste and creed) will not be permitted. The content should not be such as to disturb communal harmony or be against national interest. There should not be any sensitive or secret information in the write-up.

4.The Head of Office shall check the contents to ensure that the submission is as per format and submit to the administrative head/ authority designated for approval., This exercise would be completed at least one month before retirement and the result uploaded on the concerned departmental website on the facility to be provided by Department of Pension & P.W.

5. The Department of Pension and Pensioners’ Welfare would coordinate and collate the data and information received from various departments.

6. (a) For the employee not belonging to AIS , the write-up would be uploaded on the website of the Department from where he retires and the website of the cadre controlling authority.

b) For employee of AIS, the write-up would, in addition, be uploaded on the website of the cadre controlling authority and the State cadre to which he belongs.

7. While an online system is being designed for this purpose, for which separate set of instructions would be issued, it would be possible for employees to submit hardcopies instead of going online.

8. The Departmental website while displaying the write-up will have a disclaimer that the contents and suggestions are as provided by the retiring employee and the department is not responsible for factual inaccuracies and the veracity of the claims.

(Vandana Sharma)
Joint Secretary to the Government of India

Authority  : www.pensionersportal.gov.in

No Corporatization of Ordnance Factories: Defence Minister Assured BPMS

No Corporatization of Ordnance Factories: Defence Minister Assured BPMS

D.O.No.737/vip/RM/2015

MINISTER OF DEFENCE
INDIA

7th Feb, 2015

Dear Shri MP Singhji,

I am in receipt of your Letter dated 2nd January, 2015 expressing your apprehension about corporatisation of Ordnance Factories and purchase of Bullet Proof Jackets from the private sector.

I would like to inform you that at present there is no proposal from Ministry of Defence for corporatizing Ordnance Factories. However, it is imperative to strengthen the functioning of Ordnance Factory Board with greater autonomy in order that Ordnance Factories become more productive and efficient in their functioning.

As far as the news item about purchase of Bullet Proof Jackets from private sector is concerned, I am having the same looked into.

With regards,

Yours sincerely,
sd/-
(Manohar Parrikar)

Shri MP Singh
General Secretary
Bharatiya Pratiraksha Mazdoor Sangh

Source: BPMS

Government wants to encourage Bank Boards to restructure their business strategy…

Government wants to encourage Bank Boards to restructure their business strategy and also suggest way forward for their consolidation and merger with other banks if it is win-win for both

Banking Reforms

Performance of Public Sector Banks has remained sub-optimal so far. The Government is taking various steps to improve the situation both on governance side and otherwise. The focus of these reforms is to improve the quality of deliberations in bank boards, leading to better asset quality and further resulting in better market valuations.

What has been done

(i) Separation of the post of Chairman and Managing Director.

(ii) Enabling provision for the appointment as MD & CEO in five major banks, so that wider choice is available. Both Public Sector and Private Sector bankers can apply. Higher salary can be given in appropriate cases.

(iii) Revamping of present selection system which inter-alia includes structured three separate interviews, allotment of banks on merit-cum-preference basis.

(iv) Blue print for road map for reforms on the basis of deliberations carried out in GyanSangam, a two days top level retreat organised by the department.

(v) Allocation of capital purely on the basis of efficiency parameters so that banks start focusing on these.

(vi) Clear instructions from the department regarding no interference whatsoever in any matter whether related to HR issues or credit decisions or even otherwise.

What Next

(i) In order to improve the Governance of Public Sector Banks, the Government intends to set up an autonomous Bank Board Bureau with professionals as its members. It would be responsible for search and selection of heads of PSBs, as also for Non-Official Directors on the Boards of Banks. This would be an interim step towards moving in the direction of having a Bank Investment Company.

(ii) Guidelines relating to appointment of non-official directors is being revisited to ensure that bank boards get people with relevant expertise. Anybody eligible would be able to apply through a website which will soon be available in the public domain.

(iii) Government’s role in relation to public sector banks is that of promoter. As a promoter, the banks have been entering into anMoU for achieving certain objectives known as Statement of Intent. The whole system of Statement of Intent is being revised with provision for higher cash incentives.

(iv) Government wants to encourage Bank Boards to restructure their business strategy and also suggest way forward for their consolidation and merger with other banks if it is win-win for both.

Source: PIB News

PRESS STATEMENT of CITU on ANNUAL BUDGET 2015-16

PRESS STATEMENT of CITU on ANNUAL BUDGET 2015-16

ANNUAL BUDGET 2015·16 : DECEPTION AND LOOT ON COMMON PEOPLE

The Annual Budget presented today by Modi Govt is an articulation of anti-people and pro-corporate bias camouflaged by so called pro-people rhetoric. May be it is now the time for them to reciprocate for the total patronage, both in materials and otherwise, from the big-business lobby, both domestic and foreign at the time of last General Elections. But the Irony is that after assuming power at the centre, the NDA combine got more concemed about the donors not for those who voted them to power.

The blatant deception behind the high decibel sound-bite of “Daridranarayana” by the Finance Minister stands exposed by the fact that the Govt sacrificed Rs 8,325 crore on direct tax account by abolishing wealth Tax and reducing the corporate tax for their big-business/corporate bosses while imposing a burden of almost three times on the common people by hiking indirect tax to gain Rs.23,383 crore. Added to this is the huge concessions flowed to the big business lobby including the foreign speculators by absolving them from minimum altemative tax. In fact the total tax concessions given to the rich and big-business (around Rs 51akh crore plus), if not given, could fully wipe out the fiscal deficit of the Govt.

Moreover, the first full-fledged budget of the Modi Govt presented an exercise reflecting a visible contraction in expenditure almost in all fronts authoring a decline of Rs 17145 crore compared to 2014-15. And such decline is reflected in either drastic decline or stagnation of expenditure/allocation of central plan outlay in the sectors like Agriculture, Rural Development, social services, Health & family welfare, women & child development, education, minority affairs etc. And notable is that compared to last full-fledged UPA-II budget in 2013-14 (2014-15 budget was a product of both UPA and NDA) decline in budgetary allocation in all fronts, particularly involving welfare of common people is so drastic that the size of the entire budget gets pruned by around Rs 3 lakh crore. Can such contractionary budget create any momentum for growth?

The allocation for various central govt schemes like ICDS, Mid-day-meal, ASHA etc has been either reduced or kept at the same level. The allocation of only Rs 607 crore for the National Social Security Fund for the 90 crore unorganized sector workers is nothing but a mockery. On the other hand launching of so called Atal Pension Yojana is nothing but the deceptive repackaging of the swabalamban scheme already launched during the UPA regime.

That is why the budget speech remains reckless in painting a picture of growth and prosperity for all in future just to confuse and mislead the common people. Simultaneously fast-track reforms for the big coprorates are being pushed at the cost of common people. In the name of targeting on the needy and avoiding leakages, subsidies on food, fertilizers, fuel and social sector are being drastically cut putting mass of the people in more distress.

Budget speech was eloquent on pushing disinvestment of shares of public sector and this time the Finance Minister also mentioned about “strategic disinvestment” meaning total sell-out. As such target for disinvestment is kept at Rs 69,500 crores. The Minister also announced the decision to corporatize the major ports with the ulterior motive to put them in the track of disinvestment and privatization. Same bent of mind made the Minister to speak about setting up so called autonomous bureau to find professional heads of the public sector banks and also for raising funds through differentiated strategies-a clear blue-print for decontrol and privatization.

The Finance Minister, going beyond his brief has proposed to divert Rs 6000 crore from EPF fund for so called senior citizens’ welfare fund. EPF corpus including the unclaimed amount belongs to subscriber-workers and the Central Board of Trustees of EPF is the custodian of that fund which cannot be appropriated by the Govt for whatever purpose it may be. Similarly proposition to make EPFcontribution optional and aligning the ESI with IRDA schemes are totally retrograde much to the detriment of the interest of the working people and must be opposed and resisted by the working class movement.

A primary glance of voluminous budget papers clearly reveals the total deception being engineered on the people by Modi Govt, which actually initiated an exercise of transferring bonanzas to big-business corporate lobby sucking the common people and the working people in particular. This can no way bring either equitable growth in the economy nor even any relief, not to speak of benefit to the people who actually creates growth and generate flows to national exchequer. Such anti-people and deceptive exercise must be exposed before the common people and fought back resotutety by the united trade union movement.

PRESS STATEMENT of CCGEW on BUDGET 2015

PRESS STATEMENT of CCGEW on BUDGET 2015

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001
Website: www.confederationhq.blogspot.com
Email: confederationhq@gmail.com

President
K. K. N. Kutty
09811048303

Secretary General
M. Krishnan
09447068125

Dated: 28th Feb. 2015.

PRESS STATEMENT – Budget 2015-16.

The Budget of Modi Government for the year 2015-16 presented today to the Parliament by the Finance Minister, Shri. Arun Jaitley belied all expectations of the poor people who placed their faith in the BJP in the last general elections. It is without doubt an anti-poor and pro-rich Budget. The Corporate Tax has been slashed to please the giant multinational Corporate houses, who really are the rulers in most of the Countries of the world, including ours. The Government has foregone about 8300 crores of direct tax revenue. The burden has been put on to the shoulders of the common working people in the form of indirect taxes to the extent of more than 23000 crores mostly coming from the increased service tax kitty.

Except raising the transport allowance exemption from Rs. 800 to Rs. 1600 p.m which only benefits the higher segment of tax payers among the salaried class, no concession or tax reduction has been given to the wage earners.

By not raising the non-taxable maximum which was needed in view of the high level of inflation, Modi Government has not only squeezed the middle class but also amassed more tax revenue from those class of wage earners, who get dearness compensation. In the process Government continue to ignore several judgements to exempt DA from taxation as DA is considered as a receipt, compensatory in nature. The salaried class of tax payers was constantly demanding the re- introduction of deduction under section 16(1) of the I.T. Act which was in vogue years back. While retaining such concessession and deduction to all other segment of tax payers, the Government continue to penalise wage earners who are really the honest tax payers.

Allocation for every social welfare schemes which targets the deprived section of the society has been reduced in percentage terms, the largest reduction being in the ICDS programme. The tax concessions to the rich and corporate houses are of the order of 5.89 lakh crores. This apart, the wealth tax has been fully abolished.

The Budget 2015-16 has unambiguously declared the intention of the Modi Government to pursue the neo- liberal economic policies vigorously.

K.K.N.Kutty
President.

Posted by Confederation Of Central Government Employees