In an interview to a newspaper after presenting his second budget in the Lok Sabha, union finance minister Yashwant Sinha was candid enough to state that the recommendations of the Pay Commission were wasted by the United Front government and it buckled under the pressure of the unionised government employees.For instance, the Pay Commission had categorically suggested for the downsizing of staff by at least 30 per cent but nothing was done in this regard. Another good recommendation of the Pay Commission was to do away with plethora of holidays. But unfortunately the government of the day turned a Nelson's eye towards that suggestions.
What is, however, most baffling for the whole country and its ordinary citizens is that without considering the financial repurcussions and consequential high inflation the government not only accepted all other proposal but also showed extra zeal and enthusiasm in raising the retirement age of the employees.
In recent years, governments across the world have beenmoving in opposite directions with regard to policies concerning the salaries of their employees and their numbers, both of which have been growing out of control.
A few days ago, the Hong Kong government reduced minimum wages by 5 per cent. Recently, the Singapore government brought down government salaries by 5 to 8 per cent. China is busy slashing the number of its employees, even of its privileged military. Free rides in government cars are a thing of the past for senior officials in China.
Government employees in some African countries are offering voluntary pay cuts to enable their governments to pay their salaries which are in arrears, as there is no money in the treasury. Many developed countries have been active in downsizing their work force, as the private sector has been doing for a long time. The United States is a conspicuous example.
India, however, is headed in the opposite direction. The Fifth Central Pay Commission helped to raise salaries, perks and pensions beyond the wildest dreamsof employees, especially of senior officials, leaving the bloated size of the bureaucracy at the upper levels untouched. In most state governments, departments like the police, with multiple departmental heads, would be the envy of old Ravana who had only 10 heads.
In federal governments like the US, Canada and Australia, it is common to have different rates of pay in the central and state governments, unlike in India where each of the high court judges or the chief secretary in a tiny state like Sikkim with less than half a million population get the same pay as their counterparts in much larger states. There is clamour for pay parity in all state governments with the central government, which is being accepted one by one.
The Fifth Pay Commission was appointed by the Narasimha Rao government some months before it left office. It had only three members, a retired Supreme Court judge, an IAS officer and an academic, none of whom had any specialised experience in matters connected with pay revision. Allprevious pay commissions had many more members and some were experts in the field.
Here are a few specimens:
(a) Provision of piped music and art galleries in the corridors and reception areas of offices.(b) Small museums on the ground floor of offices.(c) Officers to be authorised to destroy some incoming papers immediately on receipt.The commission also wants to train employees to smile more. Mona Lisa will be amused. One study group had recommended swimming pools in the large offices. The report of the Fifth Pay Commission will easily qualify for being the most absurd government document produced in India during this century. It is beyond belief that it has been made the basis for the biggest pay revision.
After the exit of the Narasimha Rao government, Deve Gowda who succeeded Rao, was extremely cautious about implementing the generous recommendations of the Pay Commission. Dilly-dallying on the issue, he did not oblige the employees and the unions. It was only after hemade way for IK Gujral that government employees got what they wanted.
If press reports are true, the then finance minister P Chidambaram had major reservations about implementing the recommendations of the Pay Commission and did not even attend some of the crucial cabinet meetings. The public, which produces the money for the salary, had a raw deal indeed.
Pay revision spread like a deadly epidemic across the Indian states. Demonstrations and strikes followed. Most state governments finally yielded, bringing salary levels more or less at par with central government salaries. The effect of this has been diastrous for state government budgets which have been in a state of increasing imbalance for a long time.
The fiscal deficit in the central budget in 1998-99 is over Rs 100,000 crore; the total of the state government fiscal deficit would be much more than half of this. Neither the central nor many of the state governments will be able to carry on any longer, borrowing money on the scale they are doing,to meet non-plan expenditure.
Exorbitantly high salaries in government offices have left cascading effect. In private sector also there is growing demand for increasing the pay packets. Most of the schools are already suffering because of the Pay Commission report and its implementation. It does not mean that the present government cannot do anything. It can certainly take up some measures which are realistic and advantageous for the nation as a whole.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.