Fattening the Government Employees

FEE CRISIS
There are a few things more exasperating than trying to find a solution to a problem in which the contending sides have valid and justifiable claims. The crisis facing private schools in West Bengal over the rise in school fees is one of those problems. The crisis has to an extent come in the wake of the West Bengal government’s decision to implement the recommendations of the fifth pay commission. This, in practical terms, means a salary hike for teachers and employees in government schools, government-aided schools and private schools. This rise in salaries hits the private schools very badly because they are not dependent on the government for subsidies. They have to meet the rising costs from their own resources. The principle source of income for these schools is the fees they collect from their students. The schools have thus taken the logical step of enhancing their fees, which have risen between 50 to 80 per cent. This very sharp increase in tuition fees has naturally not found approval among most parents who send their sons and daughters to private schools in the hope of providing them with a good education. Some of these parents make considerable sacrifices for this education even without the proposed rise in tuition fees. The new fees will put private schools beyond their reach. The disapproval and the anger of the parents are understandable as is the decision of the schools to raise fees.

What else can the schools do to meet the rising salary bill? This is where a modicum of foresight could have helped to avert the crisis. For one thing, pay hikes need not be announced once every four or five years, as is customary under pay commissions. This practice inevitably imposes a very heavy outlay which institutions like private schools, without subsidies, find impossible to cope with. The option of more frequent and therefore incremental revisions is bound to be less burdensome and certainly less controversial. There is another, and deeper, aspect to consider. Private schools in India, save perhaps a school like The Doon School in Dehra Dun, have not seriously pursued the path of building up a corpus through endowments and donations made by alumni. Such a fund helps the development of a school and also serves as a cushion when government decisions increase costs. These suggestions do not solve the present impasse, but they might prevent similar ones from occurring in the future.

As reported,the Central Government employees would get their revised salaries from September 2008 onwards.The Government has to pay Rs 29,373 crore as arrears and this would be paid in two instalments.According to the plans,40% of the amount will be given in this fiscal year and the rest will be doled out next year.

This salary hiking bout will add an estimated extra Rs 17,798 crore per annum to the expenditure of the central Government.Although the Finance Minister Mr P Chidambaram ruled out the possibility of failure of meeting the budget deficits,the Prime Minister’s Economic Advisory Council has raised a red flag regarding the effect of this decision on the ability of the Government to meet deficit targets.

The Government took the liberty of modifying the recommendations of the Sixth Pay Commission (SPC) by increasing minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 as recommended by the Pay Commission. Puducherry Chief Minister N Rangasamy affirmed today that his government would implement the revised wage structure shortly.

The first article "Fee Crisis" is the Editorial in "The Statesman" of today.

The second is just a report of the 6th pay Commission where the minimum salary of entry level government employees is shown to increase by Rs 7000.00 per month.
The monthly salary bill of the government employees will increase by Rs 1483 crores, (annual Rs 17798 crores).

The population of India is around 120 crores.
10% constitute government employees i.e 12 crores.
This means that 1483 crores is distributed among 12 crore people.
This means average annual salary increase for the government employees is 123 crores
We have 60 % of our population living Below Poverty Level, i.e Rs 300 per month.
That means 72 crores of our population do not get even Rs 300/- per month or Rs 3600/- annually.
See the anamoly.
12 crore people are getting a wage increase of Rs 123 crore while 72 crore people have to live with Rs 3600/- annually.
Then our politicians wonder why there is maoism.
This has got to stop.
Why should the government set up a pay commission every five years to fatten the already fat government employees.
The government inspite of giving, cannot satisfy every one of its employees.
The discontent will continue among the various sections until the next pay commission.
But the private sector which cannot print money will have to bear the brunt of inflation caused by the increased wage bill.
As it is the government employees get DA along with their pays.
This covers the change in prices because of increase in WPI . Then why should there be increase in the pay every five years.
To cover the increase Mr Chidambaram or his successor will introduce a spate of new taxes, Service taxes, TDS etc which will affect the non-government employees. The governement employees have already got their money in advance.
It is not that only the private sector is affected.
Even State governments also find it difficult to satidsfy their employees since the states are not authorised to print money, only the central government can do it.
THIS HAS GOT TO STOP.
THIS PAMPERING OF GOVERMENT EMPLOYEES AT THE EXPENSE OF THE REST OF THE POPULATION.
As long as this pampering continues, the condition of 60% of population who live below BPL cannot improve.
NO MORE PAY COMMISSION SHOULD BE SET UP.
LET GOVERNMENT EMPLOYEES LIVE AS ORDINARY CITIZENS AND NOT AS AN ELITE CLASS.
Radheshyam