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Friday, Aug 15, 2008
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Effect on inflation taken into account, says Chidambaram

Aarti Dhar

“Union and rail budgets can take the load of new pay scales”

NEW DELHI: Finance Minister P. Chidambaram has said the impact of revised pay scales on inflation was taken into account when the government cleared the recommendations and the Budget deficit targets would also be adhered to.

Replying to queries from reporters on the Sixth Central Pay Commission recommendations adopted by the government on Thursday, Mr. Chidambaram said both the Union Budget and Railway Budget had the capacity to bear the burden on account of implementation of revised pay scales for central government employees.

The burden on Union Budget would be Rs.15,717 crore and Rs. 6,414 crore on Railway budget for 2008-09. When the Budget for 2008-09 was prepared, impact of Pay Commission’s recommendations was taken into account.

“The pay out is not a new development. It has been factored in when Budget was prepared and the Prime Minister’s Economic Advisory Council and the Reserve Bank of India gave their estimates,” he said.

Disability pension

Apart from an average hike of 21 per cent in the monthly salaries — much more than what had been recommended by the Srikrishna panel — the Cabinet also doubled the lower limits of Disability Pension for defence personnel from Rs.1,550 to Rs.3,100 and granting of War Disability pension at 60 per cent.

The rates of Special Forces Allowance for Army and Air Force will be equated with Navy’s Marine Commando Allowance and for the officers of Central Paramilitary Forces, and all the posts of Additional DIG upgraded to DIG level by the pay commission will continue to be manned by the cadre officers of the paramilitary forces.

For the railway employees who are receiving Running Allowance, it will be taken into account while fixing their pay in revised pay bands and the government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in Pay Band -3 instead of Pay Band- 2 recommended by the Sixth Pay Commission. This would benefit Group B officers of the Railways, Accounts Services, Central Secretariat Services, Central Secretariat Stenographer Services, Delhi Andaman and Nicobar Island Civil Services and the Delhi Andaman and Nicobar Police Services.

Career progression scheme

For doctors, the Cabinet has approved promotions under the Dynamic Assured Career Progression Scheme up to Senior Administrative Grade (Joint Secretary level) for doctors with 20 years of service. Counting of Dearness Allowance on Non-Practising Allowance as on January 1, 2006 for fixing their pay in revised pay bands has also been approved.

For scientists, continuation of the existing system of grant of Special Pay of Rs.2,000 a month to Scientists G on promotion and doubling of the amount to Rs.4,000 in Departments of Space and Atomic Energy and Defence Research and Development Organisation has been recommended.

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