The Hindu : Karnataka / Bangalore News : A-1 status: no hurried hurrays for State Government staff

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Wednesday, Sep 26, 2007
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Karnataka

Karnataka - Bangalore

A-1 status: no hurried hurrays for State Government staff

Bangalore Bureau

BANGALORE: Central Government employees in Bangalore are bound to get a fatter House Rent Allowance (HRA) from October 1, thanks to the city’s elevation to “A-1 Class” by the Centre. But these are still early days, as the State is yet to take a decision to increase the HRA and City Compensatory Allowance (CCA) for its employees and work out the fiscal burden on its exchequer.

State Finance Department officials are uncertain about the financial costs, but they are clear about the Centre’s increased funding. The A-1 class tag to the city is bound to increase Central funding for various projects to be undertaken by the Public Works, Urban Development and Infrastructure departments, the officials told The Hindu. The benefits of the “A-1” status are still being worked out by the State Urban Development Department. “We do not know the funding pattern for the A-1 cities by the Union Government for various urban development projects,” said an official in the Department. Since the Centre had classified the City as A-1 based on the population of Bruhat Bangalore Mahanagara Palike (BBMP), the funding to the city from the Centre would increase, the official said.

But BBMP Commissioner S. Subramanya was convinced the new status would not imply more funds for the civic body. “Bangalore was already declared a mega city four years ago and has been a beneficiary of the Centre’s Mega City Project since then. The A-1 status will not help the BBMP in getting any additional grants from the Centre or the State Finance Commission. It will only mean an increase in HRA and CCA to our employees,” he said.

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