Suggests retirement age at 58

ERC recommends cuts in perquisites

Chandra Shekhar

New Delhi, Oct 3: The Expenditure Reforms Commission (ERC) has recommended pruning of various perquisites like staff cars and leave travel concession (LTC) for government employees; family passes for railway staff; and subsidised canteen facility for armed forces personnel. The commission has also suggested that the retirement age for government employees be reduced to 58 years.

In its tenth report, ERC underlined the need for enforcing strict guidelines to restrict travel by senior government officers, both within the country and abroad. It has further suggested that the practice of providing attached toilets, separate sitting areas and captive conference rooms for individual officers should be stopped.

The report has also recommended discontinuation of the practice of asking public sector undertakings to furnish premises and rooms of ministries and secretaries. It adds that the Army system of shape up or ship out should be introduced for promotion up to the level of additional secretaries.

The commission, in its report on the civil aviation ministry, has recommended phasing out of subsidy on Haj charters and urged the government to explore the possibility of private participation in financing of the Indira Gandhi Rashtriya Uran Academy. The academy should be closed down if the government failed to find out a partner within a year, said the ERC.

As far as perquisites are concerned, the ERC has suggested that the except for ministers and high officials, all others should be encouraged to use private vehicles. The officials, however, could be paid a decent allowance to cover legitimate expenses. The ERC said that the purchase of new cars should be banned and as and when old cars are condemned, the requirement be met by taking cars on hire.

The facility of LTC, the ERC said, should be restricted to the home town of an employee. Presently, a government employee is allowed LTC for himself or herself and family once to anywhere in India and once to hometown in a block period of four years.

To deal with the problem of surplus staff, the ERC suggested that the retirement age be reduced to 58 years. Alternatively, it added, the government could make it mandatory for everyone to retire at the age of 60 or after completing 33 years of service, whichever is earlier.

Stating that the facility of free passes to railway employees is a hangover from the past, the ERC said it should be discontinued forthwith. Also, it added that the perquisites given to telecommunications employees too should be stopped.

Regarding the canteen facilities to armed forces personnel, the ERC suggested that subsidised sales be discontinued immediately, except for the families of those on active duty on the front or borders.
Presently the canteen facility is being enjoyed by both serving and retired officials, including those who have found placement in other central services.

The ERC had also recommended that the department of expenditure in the finance ministry be re-grouped into three sectors — plan finance, non-plan finance and financial advice and accounts. Presently the department has 11 divisions.