Central staff to get arrears soon
On the eve of the forthcoming festival season, the Central government has decided to release the second and last instalment of salary arrears to its nearly half a million employees. This will put a burden of over Rs 17,500 crore on the exchequer, sources said.
The government in August last year decided to pay the arrears in two instalments of 40 per cent and 60 per cent. The first instalment was paid during the last fiscal. “It has now been decided that the remaining 60 per cent of the arrears may now be paid to the government servants concerned,” a finance ministry memorandum said. Pensioners will also get their final instalment of arrears.
This additional burden on the government has come at a time when the overall government expenditure is already facing severe strain because of the Centre’s decision to step up public spending to boost economic growth in the wake of the global slowdown.
However, the memorandum has not specified the exact date of payment of the final instalment. As per government estimates, the total arrears are expected to cost Rs 29,373 crore to the exchequer. At the same time, to plough back the arrears to the government account, the memorandum said government servants would be encouraged to deposit their arrears in the general provident fund (GPF) account.
The second instalment for employees, who have joined after January 1, 2004, should be released only after ascertaining that they have joined the New Pension Scheme, the memorandum said.
