States' depleted coffers unlikely to match Centre bonanza

Government employees in state capitals have begun celebrating in anticipation that once the Sixth Pay Commission report for central government is accepted, they too will get a hike.

But the hike is unlikely to match the central government levels. Since in most cases the state government's finances are in the doldrums, the payout may be deferred. Besides, many states have their own pay commissions.

In West Bengal, Uttar Pradesh and Punjab, the Fifth Pay Commission's recommendations were accepted by the state governments, but they are still struggling to implement them.

"The UP government will asses its financial situation before taking any decision on extending the benefits of the Sixth Pay Commission to its employees," an official of the finance department said.

He pointed out that the Fifth Pay Commission report was accepted in 1996, but it was implemented in UP only in 1999. Teachers in primary sections of government schools were the last to get the award "" they got it in 2005! About 50,000 employees of various corporations and departments in UP are still to get the award.

In West Bengal, the Fifth Pay Commission's recommendations were implemented, but arrears were added to the provident fund account.

Punjab has set up its own state pay commission and its report is to be submitted in October-November this year. But whatever its recommendations, whether the state's financial position will allow it to implement the award is a moot question.

Committed expenditure of the Punjab government "" salaries, pensions and interest payment "" amounted to more than 80 per cent of revenue receipts in 2006-07.

Haryana has decided to implement the recommendations of the Sixth Pay Commission. State Finance Minister Birender Singh kept a provision of Rs 1,500 crore in the budget presented last week for this purpose.

Orissa's finances are in no better shape but it too is resigned to implementing the Sixth Pay Commission's recommendations.

The salary bill of the state government (Rs 5335.47 crore in 2007-08) could go up by 30-35 per cent by around Rs 1,800 crore in the next fiscal. However, officials made it clear that the full rollout of the revised pay package could take two or three years.

Andhra Pradesh too has its own pay commission and the term of the current one comes to an end in September-October this year.

However, state government employees are assessing whether it is the central pay commission's recommendations that will be more beneficial for them or the state government's own "" primarily because the state commission's recommendations are reviewed every five years, while the Centre reviews salaries and allowances every 10 years.

"The state government will wait for the decision of the Union government in this regard. It is very important for us to know how the Union government intends to go about implementing the recommendations," an official of the state finance department said.

The Madhya Pradesh government has no special plans "" it will await the recommendations of its own state pay commission set up just last month.

Chhattisgarh Chief Minister Raman Singh has announced to set up a state pay commission. But the government is yet to define the objective and work of it.

"The chief minister has clarified that the commission has nothing to do with the Sixth Pay Commission and has been set up to look into the salary disparity of the state government employees," President of Chhattisgarh Gazetted Officers' Association Subhash Mishra said.

"Since the (undivided Madhya Pradesh) state had implemented the recommendations of the Fifth Pay Commission, Chhattisgarh should do the same with the Sixth Pay Commission," Mishra added.

In Maharashtra, the Sixth Pay Commission recommendations are likely to increase the state's salaries and pension bill by around Rs 4,500 crore annually.

Although the state government has provided for nearly Rs 10,000 crore in the state's budget for absorbing the impact of the recommendations, it will have to cut down on its development expenditure at least in the coming financial year, if it decides to implement the commission's recommendations from January 1, 2006 onwards, said a senior office-bearer of the state government employees union.

The Karnataka government employees will have to wait for some more time for a new pay commission to be constituted as the state is under President's Rule.

The state government employees, numbering around 600,000, also maintain that they have no major reason to crib as their pay was hiked last year by the JD(S)-BJP government on the basis of the interim recommendations of the state pay commission.

Till the final report is approved, constitution of another pay commission will not happen, official sources said.