Good Attempt

It is observed in the article that the government is considering the grant of an interim relief to the central government employees, based on two considerations: The first is the concern of horizontal equity or envy. In this connection let me point out that the government is the biggest of big enterprises. The smooth functioning of any government is entirely dependent on the contributions made by its employees. To cite an example, in order to answer a question raised in the Parliament the concerned minister has to be properly briefed by his ministry. This involves such tasks as collection of facts and figures from different sources in a time bound manner, proper editing of the language etc. Does it not involve contribution by the employees? The entire control of public sector as well as corporate and private sector ultimately rests with the government. How does it undertake such a huge task without depending on its employees? How can we say that a relief paid to counteract the ill effects of rising prices, rising house rents and the rising costs of transport is based on horizontal equity ? The economy, to be congenial for the fixed income group, should be so geared by administrators to acquire such qualities as stability in prices, effective pubic distribution system and prompt availability of goods and services at reasonable costs.

 

While the efforts of the government are aimed at these goals, the adverse impact of rising prices of essential commodities and life saving drugs on the salaried class will have to be neutralised, by the government. Another point to be remembered is that the dearness allowance and interim relief are not exempted from income tax.

Has the writer looked into the aspect of house rent allowance (HRA) paid to central government employees and other statutory organisations, which follow the central government pay scales? Can the government achieve horizontality in this matter? The fourth Pay Commission recommended a HRA of Rs 800 as to be paid to employees in the pay range of Rs 3600-4499. Many of the senior group A officers of various central government organisations fall in this pay range. The market rate of house rent in metro cities is in the range of Rs 4,000-5,000. The house rent levied by landlords undergoes upward revision at frequent intervals. What the group `A' officer with Rs 800 as HRA will do in such a situation? Apparently, he will have to depend on the trickles of relief like DA and interim relief for his existence. The public sector employees who are placed on the same status are either given accommodation or a much higher HRA. Further, part of the house rent is also subject to income tax.

The article should have attempted a sample survey of the employees of the central government organisations who have adopted central pay scales posted in metro cities to ascertain the stark truth.

The article is, however, a good attempt and I congratulate the authors for their valuable contribution.