Sanjeev Pargal
JAMMU, Dec 4: The State Government had to mobilize Rs 1000 crores worth additional funds per annum from out of the budgetary provisions to pay 10 per cent Dearness Allowance (DA) installment to its about 4.5 lakh employees, which was due from July 1, 2013. The Government has exhausted the budgetary provisions in payment of first installment of DA and third installment of Sixth Pay Commission’s arrears.
Official sources told the Excelsior that the Government had a tough task in hand to mobilize Rs 1000 crores per annum for payment of 10 per cent DA installment to its employees, which was due from July 1, 2013. The Centre Government had released the installment for its employees in the month of October. Many State Governments had followed the Centre.
“We have exhausted the budgetary provision of Rs 800 crores kept this year for payment of DA installment of 8 per cent, which was due from January 1 this year and around Rs 900 crores for third installment on account of the arrears of Sixth Pay Commission,” official sources said.
They added that since the Government has exhausted entire budgetary provision on payment of DA and Pay Commission installments, it has to mop up resources to the tune of Rs 1000 crores to pay the pending 10 per cent DA installment to the employees with effect from July 1, 2013.
“It’s a huge task. The Centre has paid 10 per cent DA installment to its employees for second half of the year as against 8 per cent for first half of the year. The increase in DA installment was due to high inflation this year,” sources said.
They said: “the Government was on the job to find out the resources to announce 10 per cent DA installment to its employees. The announcement could take sometime as the Finance Ministry officials were engaged in the task of working out the resources for payment of the installment”. The installment had to be paid along with the salary from the month of announcement while its arrears from July 1, 2013 could go into GPF of the employees.
The Government later had to present revised budgetary estimates in the Legislature and get nod of both the Houses to regularize the expenditure incurred without budgetary estimates.
The Government had kept Rs 800 crores budgetary provision for payment of DA installments to its employees for current financial year of 2013-14. However, sources said, this entire amount was exhausted in payment of first installment itself, which was 8 per cent.
Also, the Government had to pay installment of Sixth Pay Commission arrears to its employees in which Rs 900 crores were exhausted. The Government had made a commitment to the employees of clearing arrears on account of implementation of Sixth Pay Commission in five equal installments by paying one installment every year.
While the Government has already paid two installments of arrears to the employees during 2011 and 2012, the third installment was paid this year. Two installments of the Pay Commission arrears were still pending, sources said, adding they would be paid in 2014 and 2015.
Sources said as soon as the Finance Ministry officials were able to mobilize funds to the tune of Rs 1000 crores, they would propose payment of 10 per cent pending DA installment to the employees before the Cabinet.
Hopefully, they added, the Government would like to pay the pending DA installment to its employees before imposition of Model Code of Conduct by the Election Commission for next Lok Sabha elections. Once the Code of Conduct is imposed, the Government can’t make announcement of payment of the DA. The Election Commission was likely to imposed Code of Conduct either by the end of January or start of February next year.
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