With reference to the report, "7th Pay Commission announces bonanza for central govt staff" (November 20), the good news is only with respect to government finances. The nearly 24 per cent increase in salary, allowances and pension for serving staff is much less than the 40 per cent increase implemented by the United Progressive Alliance government. There is no word on productivity in the announcement this time. Or is it difficult to relate to the work when it comprises only service and that, too, rendered in the context of a government?
T N Ninan in his column, "How much is enough" (November 21), writes that the pay being offered now should not be a disincentive for public-spirited people with ability, provided income maximisation is not their goal. But the assumption that income maximisation should not be their goal seems unrealistic. Senior government officials compare their remuneration with their private sector counterparts, although such a comparison is out of context. Several instances of corruption and fraud in government organisations have demonstrated that income maximisation is the only goal.
Another issue is the present government is incapable of taking politically timed decisions. A politically timed decision would have been to postpone the implementation of the Pay Commission's recommendations until a year before the next general elections, improve the pay package and capture the vote bank. When the government is not bothered about economics, it should at least be smart about timing.
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T N Ninan in his column, "How much is enough" (November 21), writes that the pay being offered now should not be a disincentive for public-spirited people with ability, provided income maximisation is not their goal. But the assumption that income maximisation should not be their goal seems unrealistic. Senior government officials compare their remuneration with their private sector counterparts, although such a comparison is out of context. Several instances of corruption and fraud in government organisations have demonstrated that income maximisation is the only goal.
Another issue is the present government is incapable of taking politically timed decisions. A politically timed decision would have been to postpone the implementation of the Pay Commission's recommendations until a year before the next general elections, improve the pay package and capture the vote bank. When the government is not bothered about economics, it should at least be smart about timing.
K V Rao Bengaluru
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number