Tuesday, January 31, 2017

Budget 2017: Despite 7th Pay Commission, monsoon booster, economy in slow lane, awaits Arun Jaitley reforms drive

Given the economy is growing way below potential despite a much-expected boost to consumption from the jump in salaries of government employees and from higher farm incomes following a good monsoon, the budget allocations for capital expenditure need to be increased substantially.

 Even in terms of non-tax revenues, the government will need to pencil in a smaller amount by way of revenues from telecom companies. (Reuters) Even in terms of non-tax revenues, the government will need to pencil in a smaller amount by way of revenues from telecom companies.

(Reuters)Given the economy is growing way below potential despite a much-expected boost to consumption from the jump in salaries of government employees and from higher farm incomes following a good monsoon, the budget allocations for capital expenditure need to be increased substantially.

In the budget for FY17, the allocation was higher by a meagre 4%. While the state governments need to do their bit, especially since they are now eligible for a bigger share of the tax collections—between April and October, these were up 9% year-on-year—their finances are not in great shape. States have tended to be more profligate in the last five years; while the central government has reduced the fiscal deficit by 2.4% of GDP, during this time states have grown theirs by 1.6% of GDP.

More importantly, the quality of this deficit may not be quite what it seems given how the accounting for the UDAY bonds may not have been kosher—ideally, states should have accounted for this as a grant under revenue expenditure rather than a combination of a loan, equity or a grant which is what some have done. If their finances are not to deteriorate further, they have little choice but to rein in capex spends.

While that requires the Centre to take up the slack, given that FY18 will be a different and difficult year with GST being rolled out from July, it is not clear exactly how buoyant tax collections will be; a one-time loss from the switch-over to the new regime also needs to be pencilled in.

Also, unlike in the last couple of years when it has reaped a bounty from excise duties on petroleum products, the Centre’s ability to raise these will be limited given the nine hikes over a period of 15 months between November, 2014 and January 2016. As such, while direct tax collections could surprise on the upside with demonetisation bringing more companies and individuals into the tax net, the outlook on indirect taxes is somewhat hazy.

Even in terms of non-tax revenues, the government will need to pencil in a smaller amount by way of revenues from telecom companies—possibly R20,000-25,000 crore—compared to FY17 since their finances preclude a fresh auction in FY18. It is possible that disinvestments and strategic sales will bring in much more than they have in past years—just R30,000 crore of FY17’s target of R56,500 crore has been achieved so far—though this cannot take care of shortfalls in other areas.

Read at:http://www.financialexpress.com/budget/budget-2017-despite-7th-pay-commission-monsoon-booster-economy-in-slow-lane-awaits-arun-jaitley-reforms-drive/528474/

Expected da january 2017-AICPIN for the month of December 2016

No. 5/1/2014- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT, SHIMLA-171004
DATED: 31st January, 2017

Press Release

Consumer Price Index for Industrial Workers (CPI-IW)-December, 2016

The All-India CPI-IW for December, 2016 by 2 points and stood 275 (two hundred and seventy five). On 1-month percentage change, it decreased by (-) 0.72 per cent November and December, 2016 when compared with the decease of (-) 0.37 per cent between the same two months a year ago.

The maximum downward pressure to the change in current index came from Food group conuibuting (-) 2.74 percentage points to the total change. At item level, Arhar Dal, Gram Dal, Masur Dal, Urd Dal, Groundnut Oil, Muslard Oil, Chillies Green, Ginzer, Brinjal, Cabbage, Carrot, Cauliflower, French Beans, Gourd, Green Coriander Leaves, Methi, Palak, Peas, Potato, Radish, Tomato, Banana, Lemon, etc. are responsible for the decrease in index. However, this decrease checked by Rice, Wheal, Wheat Alta, Coconut OiL Fish Fresh, Goat Meat, Milk Snack Saltish, Cooking Gas, ESI Premium Contribution, Petrol, Flowe/Flower Garlands, Toilet Soap, etc., putting upward on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 2.23 per cent for December, 2016 as compared to 2.59 per cent for the pervious month and 6.32 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 0.67 per cent against 1.66 per cent of the previous month and 7.94 per cent during the corresponding month or the previous year.

At centre level, Rourkela reported the maximum decrease or 10 points followed by Vadodara (9 points), Nagpur and Lucknow (8 points each) and Amritsar, Varanasi and Monger Jamalpur (6 points each). Among others, 5 points decrease was observed in 7 centres, 4 points in 12 centres, 3 points in 9 centres, 2 points in 15 centres and 1 point in 10 centres. On the contrary, Quilon recorded maximum increase of 6 points followed by Ernakulam and Mundakkayam (3 points each). Among others, 2 points increase was observed in 4 centres and 1 point in 4 centres. Rest or the 7 centres indices remained stationary.

The indices or centres are above All-India Index and other 43 centres indices are below national average. The index or Vishakhapathnam centre remained at par with All-India Index. The next or CPI-IW fer the month of January, 2017 will be released on Tuesday, 28th February, 2017. The same will also be available on the office website www.labourbureaunew.gov.in

sd/-
(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL
Source:http://www.labourbureau.gov.in/

SEVENTH PAY NEWS-16th March Strike Importance-Confederation

Dear Comrades,
                            The main demands of the Staff Side (JCM) which led to declaration of the 11th July strike is the revision of the NPS, minimum wage, fitment formula, allowances and pension cases etc. this is due to lowest wage hike of just 14%  recommended by the 7th CPC.

Under the 7th Pay Commission slab – which was implemented ten years after the previous pay commission the salaries of the government employees saw a marginal rise of just 14% . The basic pay under the 7th CPC the minimum wage  was increased to Rs 18,000 from Rs 7,000 (2.57 times) while the salary of the senior government officials has gone up to Rs 2.50 lakh from Rs 90,000(2.77 times).

The minimum wage was increased by 2.57 times but in actual terms this increase is of just Rs 2250/- in 7th CPC, while taking into account of 125% DA was merged this due to rising inflation and price rise already the CG employees wage factor was 2.25 time, that is basic of Rs 7000/- plus DA of 125% of Rs 8750 works out to Rs 15750/- , staff side had already demanded for a hike of more than three times which is Rs 26,000 per month.

Comparison of earlier wage hike we can observe that the fitment factor of 2.57 times   is the lowest comparing to other pay commissions. If we make a study of earlier pay commission.

Pay Commission
Year

Minimum wage old
Minimum wage revised
Increase
2nd CPC
1959
Rs 55/-
Rs 80/-
1.45 times
3rd CPC
1973
Rs 80/-
Rs 196/-
2.45 times
4th CPC
1986
Rs 196/-
Rs 750/-
3.82 times
5th CPC
1996
Rs 750/-
Rs 2550/-
3.40 times
6th CPC*
2006
Rs 2550/-
Rs 7000/-
2.74 times
7th CPC *
2016
Rs 7000/-
Rs 18000/-
2.57 times


        The minimum wage has increased considerably due to price inflation from 4th CPC (1986) onwards the average wage hike is 3.32 times.  During the period 1946 to 1972, the financial position of the Central Government was not that good. The financial position of the Central Government has been improving from the 4th CPC onwards that is from 1986 onwards, the pay fixation depends on the paying capacity of the Central Government.  The revenue collection of the Central Government has increased especially from last few years.  The revenue expenditure in respect of salaries of Central Government employees is just under 10% of the Central Government revenue.  In respect of the many State Governments the revenue expenditure towards salaries is around 20%. Whereas the Central Government is spending just 10% of the revenue collection on salary head.

The wages of CG employees are determined based Dr. Aykroyd formula, the  Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into market prices. Even if we adopt the retail prices of The Directorate of Economics & Statistics Department of Agriculture & Cooperation Ministry of Agriculture Government Of India New Delhi   of the month of July 2016 the minimum wage works out to Rs 24,000/ which is 3.42 times increase. The 7th CPC has also  adopted Dr. Aykroyd formula for the computation of the minimum wage and fixed at Rs 18000/- and thereafter the fitment formula is calculated.

CLICK HERE FOR MINIMUM WAGE DETAILS 

Fitment formula = Minimum wage Rs 18000 / Rs 7000  =  2.57

The Staff Side (JCM) had demanded the fitment formula of 3.72  that is  Rs 26000/ Rs 7000 as on 1st Jan 2014. Whatever angle we look the 7th CPC has cheated us on the minimum wage and fitment formula compared to the earlier pay commission this pay commission has given us the lowest wage hike of just 14% compared to last 40 years.

Meanwhile, some reports suggest that the employees who have been eagerly waiting for higher allowances under the 7CPC will have to bear three more months of delay to get their allowances revised . Due to early Budget which is followed by Assembly Elections in five states, due to which model code of conduct has been imposed, the government is likely to delay the payment of the higher allowances. The polling in five states – Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur – will begin on February 4 and the results will be declared on March 11, after that only our allowances will be decided.


The financial position of the Central Government is very good. Even the GDP (Gross Domestic Product) has shown increase in last few years which is around 7% ,  the Indian economy is fastest growing and placed 7th in the world  ( which is at 2,250.987  billions of $ ), comparing to wages paid in  the world our wages are at lower  level. The Government fiscal budget deficit equal to 3.50 percent of the country's Gross Domestic Product in 2016. Compared to 2008 where the fiscal deficit was at 7.8 %,  but today the fiscal deficit is contained at 3.5%. This is also a healthy sign of the economic status of the Central Government financial status, the budget fiscal deficit is always below 4%.

The Central Government financial position is very good even after demonetization, only a political decision the Central Government on our demands.    Comrades the Hon’ble Finance Minister has given a given a press statement in media channel’s that the effect of demonetisation has not taken place on the revenue collection of the union government, in fact that the revenue collection has increased, even the revenue of the State Governments has increased considerably, the press release of the Ministry of Finance on 9/1/2017 has endorsed the Hon’ble Finance Minister statement.

To avert the 11th July CG employees strike the Hon’ble Prime Minster had instructed the group of ministers including Shri Rajnath Singh, Hon’ble Home Minister, Shri Suresh Prabhu , Hon’ble Railway Minister    and Shri Arun  Jaitely , Hon’ble  Finance Minister to hold discussions with the Staff Side (JCM) on 30th June 2016 and the Shri Arun  Jaitely , Hon’ble  Finance Minister had published a written assurances in the Government  website on 6th July 2016 leading to deferment  of the strike .

 Now comrades seven months has passed the assurances given by the group of ministers has not been fulfilled so far, in this connection the NJCA met on 17th January 2017 at New Delhi. The Confederation was represented by Comrades KKN Kutty, M Krishnan and MS Raja. Comrades RN Parashar and Giriraj Singh represented NFPE (constituent of Confederation).

 Com. Shiva Gopal Mishra Staff Side Secretary (JCM) and Com M. Raghavaiah, Chairman Staff Side (JCM)   had a meeting’s with the  Cabinet Secretary and Shri Rajnath Singh, Hon’ble Home Minister on 18th Jan 2017 regarding the demands of the CG employees as assured by the group of ministers on 30th June 2016.

 Shri Rajnath Singh, Hon’ble Home Minister had once again assured that the issues of CG employees will be resolved, but no time frame has been fixed for resolving the issues or any concrete assurances are given on our demands .  
 
The strike is the last resort for achieving our demands, but we are forced to undertake the strike action due to following events.
1)    The 7th CPC has erred in fixation of the minimum wage by adopting the wrong prices, and methodology. Thereby the minimum wage and fixation formula has to be corrected.

2)      The Government has assured our staff side leaders that they will settle the demands of CG employees in four months’ time, but seven months has lapsed till now the demands of CG employees are not settled even allowances issue is also not settled so far.

3)     Comrades , now the revenue collections of the Central Government has increased , the Central Government has financially capable to accept our demands of revision of allowance, minimum wage, fitment formula etc., revision of tax slabs should also take place , the Central Government employees should benefit as we were  serving with dedication the Central Government and Central Government is a model employer.

 Comrades Central Government has now take a political decision on our demands of revision of allowance, minimum wage, fitment formula and revision of tax slabs.

For this we have to struggle and put pressure on the Central Government to accept our demands.  In this circumstance, it should be our endeavor to campaign more vigorously for the successful strike on 16th March 2017                                                                            

                                                                            Comradely yours

                                                                                (P.S.Prasad)
                                                                            General Secretary   

Source:http://karnatakacoc.blogspot.in/2017/01/16th-march-strike-importance.html

Filed Under: ,

Limits on Cash withdrawals from Bank accounts and ATMs – Restoration of status quo ante

RESERVE BANK OF INDIA
www.rbi.org.in

RBI/2016-17/217
DCM (Plg) No. 2905/10.27.00/2016-17

January 30, 2017

The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks,
Regional Rural Banks / Urban Co-operative Banks,
State Co-operative Banks / District Central Co-operative Banks

Dear Sir/Madam,

Limits on Cash withdrawals from Bank accounts and ATMs – Restoration of status quo ante

Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 placing limits on Cash withdrawals from bank accounts and ATMs in the wake of withdrawal of Legal Tender Character of Specified Bank Notes (SBN) and subsequent circulars DCM (Plg) Nos.1256, 1274, 1317, 1437, 2142 and 2559 dated November 11, 14, 21, 28, December 30, 2016 and January 16, 2017 respectively, providing for relief and relaxations therefrom.

2. On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under:

Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.

The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.

Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.

3. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.

4. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Source:https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10840&Mode=0

Filed Under: ,

Aadhar enabled Biometric Attendance System for marking attendance

Principal Controller of Defence Account; (Central Command),
Carriapa Road, Lucknow Cantt, Pin-226002

Circular

No.AN/1A/1004/Misc/2017

Dated:27/01/2017

To

The CDA, RTC Lucknow
All Sub Offices
(under the organisation including IFAs)
All sections in main office

Sub:– Aadhar enabled Biometric Attendance System for marking attendance.

The Department of Personnel & Trair ing vide letter No. 11013/9/2014-Estt(A-III) dated 21st November 2014 (circulated vide Hqrs Office letter No. AN/lll/3012/Misc/BAS dated 20.02.2015) has decided to use an AADHAR based Bio-metric Attendance System (AEBAS) in all offices of the Central Government, including attached/sub-ordinate offices in India.

Biometric Attendance System is only an enabling platform. There is no change in the instructions relating to office hours, late attendance etc. which will continue to apply. As per extant instructions, half-a-day’s Casual leave should be debited for each day of late attendance, but late attendance upto an hour, on not more than two occassions in a month, and for justiafiable reasons may be condoned by the competent authority. In addition to debiting Casual Leave(or Earned Leave, when no CL is available) disciplinary action may also be taken against government servants who are habitually late. Early leaving is also to be treatE d in the same manner as late coming.

Therefore, all the staff and officers will mark their attendance through AEBAS only. The manual attendance may be discontirwed immediately.

GO(AN) has seen.

(S.K.Gupta)
Sr.AO(AN)

Source:http://pcdacc.gov.in/download/circularsnew/aadhar_enabled_bas.pdf

Shri Ram Vilas Paswan approves recommendations of 7th CPC for employees of Bureau of Indian Standards (BIS)

Shri Ram Vilas Paswan, Union Minister of Consumer Affairs, Food and Public Distribution, has given approval for applicability of revised pay scales to employees of Bureau of Indian Standards (BIS) as per recommendations of 7th CPC.

The Union Minister said “Approval given to Bureau of Indian Standards (BIS) for applicability of revised pay scales to its employees on recommendations of 7th CPC. Financial arrangements to provide new pay scales to the employees of BIS will be made from own resources of this organization.”

Source:pib

LTC Claims for the Period from 28.11.2015 to 31.05.2016 can be allowed - Central Civil Services (Leave Travel Concession) Rules, 1988 — Relaxation to travel by private airlines to visit Jammu & Kashmir.

No.31011/7/2014-Estt.(A-IV)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
Establishment A-IV Desk
North Block, New Delhi-110 001
Dated: January 13, 2017

OFFICE MEMORANDUM

Subject:- Central Civil Services (Leave Travel Concession) Rules, 1988 — Relaxation to travel by private airlines to visit Jammu & Kashmir.

The undersigned is directed to refer to this Ministry’s O.M. of even no. dated 28.11.2014 on the subject noted above and to say that vide aforesaid O.M., facility to travel on LTC by private airlines to Jammu & Kashmir (J&K) under the special dispensation scheme was allowed for a period of one year. This facility ended w.e.f. 28.11.2015 and was re-introduced on 01.06.2016.

2. Many references have been received about Govt. Employees who had inadvertently travelled by private airlines to J&K during the gap period, i.e. from 28.11.2015 to 31.05.2016, under the impression that the facility was still operational and were later facing difficulties in settlement of their LTC claims.

3. The issue has been examined in consultation with the Department of Expenditure and Ministry of Civil Aviation. In relaxation to this Department’s O.M. of even no. dated 28.11.2014, it has been decided to allow the claims of those Government employees who had travelled by private airlines to Jammu & Kashmir on LTC during the gap period of 28.11.2015 – 31.05.2016. This shall be subject to the condition that tickets have been booked through the authorised modes and at LTC-80 fare or less and other conditions prescribed in DoPT’s O.M. No. 31011/7/2014-Estt.A-IV dated 28.11.2014.


(Surya Narayan Jha)
Under Secretary to the Government of India

Source:http://nfpe.blogspot.in/

Extension CGHS facilities to P&T pensioners

29th SCOVA meeting under the chairmanship of Hon’ble MOS(PP) – Action Taken Report on the Minutes of the 28th SCOV A meeting held under the Chairmanshipof Hon’ble MOS(PP) on 27.06.2016

Mini try of Personnel, Public Grievances and Pensions (Department of Pension & Pensioners Welfare)

Para 4(iv) of the minutes:- Extension CGHS facilities to P&T pensioners

The representatives of Ministry of Health and Family Welfare informed that the 7th CPC has recommended that all Postal Dispensaries should be covered with CGHS. It was decided to await the decision of the Government within a month.
(Action:- Ministry of Health and Family Welfare)

Ministry of Health and Family Welfare
The decision of the Government on the recommendations of 7th CPC is still awaited.

DoPPW
Ministry of Health & Family Welfare to indicate latest status during the meeting a to where the matter is pending. The Ministry of Health and Family Welfare has also been reminded on the same vide DoPPW OM dated 04.01.2017 to expedite the matter.

Source:nfpe blog
Filed Under:

Representation of Defence Civilian Employees’ Federations regarding misinterpretation of Revised Pay Rules 2016 leading to incorrect pay fixation of employees

Immediate
Government of India
Ministry of Defence
Department of Defence
D(civ-I)

Subject: Representation of Defence Civilian Employees’ Federations regarding misinterpretation of Revised Pay Rules 2016 leading to incorrect pay fixation of employees – reg.

The Defence Civilian Employees’ Federation have reported that the Accounting Authorities in the Defence Estts. are misinterpreting the provisions of CCS(RP) Rules, 2016 leading to anomalies pay fixation of the defence employees. The Federations have demanded that clarification may be issued to the Defence Estts. to enable them to issue correct pay fixation orders of the employees, on the basis of the options exercised by them.

2. Taking into account these reports, MoD has sent a proposal to MoD(Finance) to seek clarification about the manner of fixation of pay through illustations prepared by this office. The said proposal for seeking clarification has been sent to MoD(Fiance) on 5.12.2016. A copy of this proposal is enclosed for information. In view of the complaints of incorrect pay fixation in defence establishments, it is requested that the clarification on this subject from Ministry of Finance/MoD(Finance) may please be awaited so that the pay fixation of the employees could be issued on the basis of right position. This position may please be communicated to various Accounting Authorities under the Contral of CGDA to avoid any inconsistencies in the matter of pay fixation.

sd/-
(Pawan Kumar)
Under Secretary



Source: http://nfpe.blogspot.in/

Friday, January 27, 2017

Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
OFFICE OF THE PRINCIPLE CONTROLLER OF ACCOUNTS(FYS)

To
The Secretary, OFB, ID-A, S.K. Bose Rd, Kol-01
All Sr. General Managers/All General Managers

Ordnance/ Equipments Factories.
All Group controllers & Branch AOs

Sub: Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

Kindly refer to DoP&T letter No.31011/3/2015-Estt(A.lV) dated 18/02/2016 wherein it is mentioned under points 14 & 15 that Govt employees not entitled to travel by air, may travel by any airline. However, reimbursement in such cases shall be restricted to the fare of their entitled class of train/transport or actual expense, whichever is less. In all cases whenever a Govt servant claims LTC by air, he/she is required to book the air tickets either directly through the airlines or through the approved travel agencies viz M/s Balmer Lawrie & Co. Ltd/ M/s Ashok Tours & Travels Ltd/ IRCTC. Booking of tickets through any other agency is not permissible.

This is for your information, guidance and necessary action please.

Dy.Controller
Accounts(Fys)

Source:: http://pcafys.nic.in/

Loans and Advances by the Central Government – Interest rates and other terms and conditions

F.No.5(3)-B(PD)/2016
Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 6th January, 2017

OFFICE MEMORANDUM

Subject:- Loans and Advances by the Central Government – Interest rates and other terms and conditions.

Reference this Ministry’s Office Memorandum F.No.5(3)-B(PD)2015 dated 3rd February, 2016 on the captioned subject.

2. The lending rates, categories and conditions prescribed in the aforesaid Office Memorandum have been reviewed. The revised rates of interest, categories and conditions as given in the TABLE below, would be applicable from 1st April, 2016 and till the time these are reviewed:
Category of borrower & type of loan
Interest rate per cent per annum
1. State Governments (EAP Loan):
8.00
2. Union Territory Governments (with Legislature):

(i) Loans upto 1 year and EAP loan
8.00
(ii) Other Loans
8.50
3. Industrial and Commercial Undertakings in the Public Sector and Cooperatives: Loans for implemantation of VRS in sick PSUs


The terms and condition and conditions regarding eligibility of loan would remain the same as that of last year. If any specific request comes in future from any other financial institution/CPSE/Autonomous Body/Cooperative, it would be examined by the Budget Division, DEA on merits of that case.

3. The terms, including interest rate of loans to Foreign Governments may be settled in consultation with Budget Division. Terms for on-lending of funds under externally aided projects should be in accordance with the prescribed pattern. In case, deviation is considered necessary, Budget Division should be consulted.

4. The interest rates prescribed above assume timely repayments and interest payments and hence no further rebate in rates is to be allowed for timely payments.

5. OTHER TERMS AND CONDITIONS
(a) The loan sanctioning authority should meticulously follow the instructions contained in General Financial Rules, 2005 (GFR 2005), particularly, rules framed under Chapter 9 (II-LOANS) of
GFR, 2005, while sanctioning loans to various entities as stipulated therein.
(b) The instructions issued from time to time have been reviewed and are set out in the following paragraphs for facility of reference.

6. STATE GOVERNMENTS
In the case of loans to State Governments, the arrangements for payment of annual instalment of principal and interest will be as under:-
(a) Block loans for State Plan Schemes and other Plan loans for Centrally Sponsored Schemes:- These loans when drawn in instalments, will be consolidated and deemed to have been drawn as on 1st October in each year. The maturity period of the loans sanctioned for State Plans is 20 years, repayments being made in 20 annual equal instalments together with interest on the outstanding balance commencing from the following year, subject to consolidation under the award of Twelfth Finance Commission (TFC).

However, fifty per cent of these loans will enjoy a five year initial grace period, after which repayments of these loans will be effected in 15 annual equal instalments. The amounts annually payable(by way of principal and interest) would be recovered in 10 equal monthly instalments commencing 15th June, subject to debt waiver under the award of TFC.

(b) Other Loans:- The terms of repayment of these loans will be as laid down from time to time.

7. PUBLIC SECTOR PROJECTS
(A) For new installations or expansion of existing institutions:
(a) The terms and conditions of loans should be fixed with reference to the financial picture presented in the approved Project Report. (Once the pattern is settled, there should be no change except with the specific concurrence of this Department for reasons to be stated in writing).(b) The capital requirements of a project should include adequate provisions for interest payment on borrowings during the period of construction (as specified in the Project Report). The interest on loans due during the period of construction will be allowed to be capitalised to the extent of the provisions made for this purpose in the approved Project Report. In other words, while interest on loans advanced to an undertaking during the period of construction will be notionally recovered by allowing its capitalisation, the payment of interest should effectively commence after the construction period is over.

(c) The repayment of principal should ordinarily commence one year after the project commences production, the number of instalments being determined with reference to the financial projections and repaying capacity specified in the Project Report. Requests for further moratorium will be considered only in exceptional cases where the Project Report has specified any special circumstances that may necessitate a longer period of moratorium and has indicated clearly what staggering of repayment would be needed over the necessary break period. The period of loans sanctioned against capitalised interest during the period of construction may also be on the same terms and conditions as are applicable to loans provided for financing the project costs.

(d) A suitable period of moratorium subject to a maximum of five years from the date of drawal of the loans may be allowed for the repayment of instalments of principal, having regard to theNATURE of the project, the stage of construction etc. The period of moratorium should not, however, extend in any case, beyond two years from the date of project going into production, or in the case of programmes of expansion, beyond two years from the date of expanded project coming into operation.

(B) For meeting working capital requirements: The undertakings are expected to obtain their cash credit requirements from the State Bank of India/Nationalised Banks by hypothecating their current assets (such as stock of stores, raw materials, finished goods, work in progress, etc.) and where the entire working capital requirements cannot be raised in this manner by seeking a guarantee from Government. Accordingly, requests from Public Sector Undertakings for funds for meeting working capital requirements should be considered only to the extent the same cannot be had from the State Bank of India/Nationalised Banks.

8. GENERAL REPAYMENT PERIOD
(A) (i) The period for repayment of loans for all parties other than State Governments should be fixed with due regard to the purpose for which they are advanced and it should be restricted to the minimum possible. Normally, no loan should be granted for a period exceeding 10 years. Where a longer period for repayment is sought, prior concurrence of the Budget Division in this Department will be necessary for fixing the period.
(ii) The repayment of a loan should normally commence from the first anniversary date of its drawal or on expiry of the period of moratorium, as the case may be. The recovery should ordinarily be effected in annual equal instalments of principal.
(iii) The period of repayment of working capital loans should preferably be restricted to two or three years. In no case, however, the period of these loans should exceed 5 years.

(B) Moratorium: Subject to exceptions made in respect of pubic sector projects, a suitable period of moratorium towards repayment might be agreed to in individual cases having regard to the project for which the loans are to be utilised. However, no moratorium shouldordinarily be allowed in respect of interest payment on loans. Ministries/Departments may with the approval of their Financial Advisers allow moratorium on repayment of principal wherever considered necessary upto a maximum period of 2 years.

(C) (i) Repayment before due date: Any instalment paid before its due date may be taken entirely towards the principal provided it is accompanied by payment towards interest due upto date of actual payment of instalment; if not, the amount of the instalment will first be adjusted towards the interest due for the preceding and current periods and the balance, if any, will alone be applied towards the principal. Where the payment of the instalment is in advance of the due date by 14 days or less, interest for the full period (half year or full year as the case may be) will be payable. If any State Government repays an instalment of a loan which is consolidated as on 1st October, in advance of the due date by more than 14 days the interest

(ii) Pre-payment premium: Prepayment premium of 0.25% on the loans with residual maturity of less than 10 years and 0.50% for the loans with residual maturity of 10 years and above, shall be charged. The provision does not apply to the loans to State/UT Governments.

(D) Penalty Clause: The loan sanctions/agreements should invariably include a penalty clause providing for levy of a penal rate of interest in the event of default in repayment of instalment(s) of principal and/or interest. The penal rate of interest should not be less than 2.50% above the normal rate of interest at which a loan is sanctioned.

(E) Defaults in repayment/interest payment:
(i) In the event of a default in repayment of loan/interest payment, the recovery of interest at penal rate may not be waived unless there are special reasons justifying a waiver. However, a decision in this regard will be taken by the Ministry of Finance (Budget Division) on the advise of Financial Adviser. Even in such cases, a minimum of 0.25% should be recovered from the defaulting party as penalty.

(ii) The penal rate of interest is chargeable on the overdue instalments of principal and/or interest from the due date of their payment to the date preceding the date of actual payment.

(iii) Whenever a fresh loan is to be sanctioned to a borrower who has earlier defaulted, the loan sanctioning authority must consider the question of recovery of defaulted dues. All releases to Public Sector Undertakings against budgeted outlays should be made only after adjusting the defaults, if any, pertaining to repayment of loans and interest. If for special and exceptional reasons such adjustments are not possible, specific orders of Secretary (Expenditure) should be obtained through Budget Division, before release of fresh loans, in relaxation of extant orders, in conformity
with this Division circular No.F.2 (190)-B(SD)/91, dated 15.10.1991.

(iv) Any defaults should ab-initio serve as a warning signal to the Ministries/ Departments for which curative action has to be taken immediately.

(v) Ministries/Departments need to critically review the financial position of the borrower, including defaulting CPSUs and wherever possible, should take immediate action to recover the money due to the Government.

(vi) In the case of defaulting CPSUs, there has to be a clear road map for restructuring of these CPSUs, as prolonged approval results in burgeoning of defaults.

(vii)Ministries/Departments are to ensure that these defaults do not become fiscally unsustainable.

(viii) Wherever Ministries/Departments are considering restructuring of a CPSU, it must be ensured that besides equity infusion, funds mobilisation, rescheduling of loans/interest payments, write off of dues, etc. should be formulated holistically. However, no request for waiver/postponement of instalments on any ground whatsoever will be accepted, except in cases of companies referred to BIFR or in respect of those companies which have incurred cash losses for last three years, in conformity with this Division circular No.F.2(165)-B(SD)/94, dated 06.10.1994.

(F) Requests for modification of terms of loans:
(i) Borrowers are required to adhere strictly to the terms settled for loans made to them and modifications of these terms in their favour can be made subsequently only for very special reasons. Requests for modification of terms may relate to increase in the period of a loan or of initial moratorium period towards repayment, or waiver of penal interest or reduction in or waiver of normal rate of interest. The procedure of dealing with requests for waiver of penal interest has already been dealt with in paragraph 8. Cases involving other modifications in repayment terms should be considered in consultation with the Budget Division in this Ministry. In referring such cases, the impact of the modifications on the estimates of repayment/interest which have gone into the Budget and Government’s resources position should be succinctly brought out by the administrative Ministry.

(ii) In examining proposals for modification of the period of the loan, the interest rate at which the loan was sanctioned should also be reviewed. In the case of a loan of which repayment has already commenced the revised rate of interest should be applied ab initio only to the residuary portion of the loan outstanding on the date of extension of its period.

(iii) Requests for waiver of recovery of normal interest (either for a specified period or for the entire period) on a loan which originally sanctioned at normal rate of interest, will attract the provisions of Rule 223 (1) of G.F.R.2005 and should be dealt with accordingly.

(G) Loans sanctioned at concessional rates:
(i) In cases where loans are to be sanctioned at a concessional rate, the instructions contained in Rule 223 (1) of G.F.R.2005 have to be observed. In such cases, payment of subsidy (to cover the concession viz. difference between normal rate and concessional rate) should be made conditional upon prompt repayment of principal and payment of interest thereon by the borrower.

(ii) In cases where loans are sanctioned interest free (e.g. loans to technical educational institutions for construction of HOSTELS) prompt repayment should be made a condition for the grant of interest free loans. That is to say, the sanction letter in such cases should provide that in the event of any default in repayment, interest at rates prescribed by Government from time to time will
be chargeable on the loans.

(iii) Similarly, in the case of interest free loans to departmental canteens where subsidy is also provided to meet running expenses, the sanction letter should stipulate that in the event of any default in repayment, the defaulted dues would be recovered out of the subsidy payable.

(H) Miscellaneous: A standard form prescribed for issue of loan sanctions (Appendix-I) should ordinarily be followed.
(i) The date of drawal of a loan by the borrower will be date on which he received cash, cheque or bank draft from the Drawing and Disbursing Officer. It should be ensured that the time lag between the date of obtaining the cash/cheque/bank draft and its disbursement/delivery/despatch to the payee is reduced to the minimum. Where the cheque or bank draft is sent through post, the date of posting should be treated as the date of disbursement of the loan. The Drawing and Disbursing Officer should invariably intimate the date of payment to his Accounts Office to enable the latter to make a suitable note in his records.

(ii) In the case of loans sanctioned to parties other than State and Union Territory and Foreign Governments and Government Servants, the borrower should tender the amounts due on or before the due date, at the New Delhi Office/Main Office of the public sector bank accredited to the Ministry/ Department which sanctions the loan, in cash or by cheque or draft drawn on any scheduled bank in Delhi/New Delhi in favour of the said PSB Branch. The payment should be accompanied by a memorandum or challan in duplicate indicating (a) name of the loan sanctioning Ministry/Department; (b) No. and date of the loan sanction letter and the loan amount sanctioned; (c) amount due for payment separately for interest and principal and the head(s) of account to
which the dues are to be credited in the Government Accounts; and (d) due date of payment. The borrower should be asked to tender separate chequ Outstation loanees are required to arrange the dues through their bank ensuring that the memorandum/challan and the cheque/draft reaches the aforesaid PSB Branch in New Delhi by the due date.

(iii) Ministries/Departments are required to keep closeWATCH on timely repayments of loans advanced by them and recovery of interest thereon. Rule 220 (1) (viii) of G.F.R. 2005 provides for a notice to be given to the borrowers a month in advance of the due date of payment of instalment of the principal and/or interest thereon. Such notices may be sent in the form given in Appendix II. The borrower should not however be given any advantage in the event of non-receipt of such a notice. Repayments/interest payments due from the loanees should also be reviewed at least quarterly, and where any default has occurred, a fresh notice should be served on the borrower to arrange payment with penal/higher rate of interest in the form set out in Appendix III.

(iv) Individual cases relating to terms and conditions of loans need not be referred to the Department of Economic Affairs (Budget Division) unless it is proposed to deviate from those laid down in
this Office Memorandum.

This issues with the approval of Finance Minister.

(Vyasan R)
Deputy Secretary (Budget)



Source: www.finmin.nic.in
Filed Under: , ,

7th Pay Commission: In 70 years, senior govt officials' salary hiked from Rs 2,000 to Rs 2.50 lakh

The 7th pay commission has recommended a 14.27 per cent increase in the basic pay of govt employees.

In the last 70 years, the Central government has announced seven central pay commissions.  The 7th pay commission has recommended a 14.27 per cent increase in the basic pay of govt employees.

In 1947, after India's Independence, the lowest salary of a central government employee was Rs 55 per month while the senior most officials took home a salary of Rs 2000 per month. After the 6th pay commission, the monthly salary of senior government officials rose to Rs 90,000 with the lowest salary being Rs 7000 per month.

Central Pay Commission's previous recommendations:


The government employees' salaries saw a significant rise with the 7th pay commission.  Now, after the 14.27 per cent increase in basic salary, the lowest salary has been increased to Rs 18,000 from Rs 7,000 while the salary of senior government officials has gone up to Rs 2.50 lakh from Rs 90,000.

In the last 70 years, the Centre has increased the minimum salary of its employees from Rs 55 to Rs 18,000 per month - a hike of 32,727 per cent.

Whereas the salary of senior officials has seen a quantum jump of 12,500 per cent in the same period, from Rs 2,000 per month to Rs 2.50 lakh.

Clarification regarding timely payment of GPF final payment to the retiring Government servant

No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.

OFFICE MEMORANDUM

Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant – regarding

During review meetings held to evaluate the status of implementation of Bhavishya with Ministries/Departments, it was observed that GPF final payment in many cases is not being paid to the retiring Government servants immediately on retirement from service leading to payment of interest for the delayed period.

2. Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment. The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation. It may be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide this Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.

3. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.

4. To ensure timely final payment of GPF, and to avoid unnecessary financial burden on account of interest beyond retirement, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules, 1960, shall be put up for consideration to the Secretary of the Administrative Ministry/Department. In all such cases the Secretary of the Administrative Ministry/Department will fix responsibility at all levels to take appropriate action against the Government servant or servants who are found responsible for the delay in the payment of General Provident Fund.

5. This issues with the concurrence of the Ministry of Finance, Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th September 2016.

6. Hindi version will follow.

(Seema Gupta)
Director

Source:http://document.ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/3-3-2016-ppw-f.pdf
Filed Under: ,

KAMALESH CHANDRA COMMITTEE REPORT ON GDS – ONE STEP FORWARD

 Sri Kamalesh Chandra, Retired Member, Postal Services Board & Chairman Gramin Dak Sevak Committee has submitted it’s report to Government on 24th November 2016. Even though earlier GDS Committee reports were published on the same date of submission itself , this time the Postal Board kept it pending for two months and published only on 19th January 2017. Against the unjustified delay in publishing the report , NFPE & AIPEU – GDS conducted series of agitational programmes like protest demonstrations , mass dharnas and finally declared indefinite hunger fast of Secretary General and all other General Secretaries in front of Postal Directorate (Dak Bhavan) from 18th January 2017.

The main recommendations of the Committee relates to simplification and rationalisation of categories of GDS and the number of Time Related Continuity Allowance (TRCA) slabs, increasing the wages of GDS and other welfare measures of GDS. The Committee has not attempted to analyse the justification of our demand for grant of Civil Servant status to GDS and has refrained from making any recommendations on the legal status of the GDS stating that the matter is presently subjudice and hence left it to the outcome of the court case. The committee , however , observed that there is a tendency to withhold the legitimate demands of GDS which are due to them , based on the apprehension that they will get closer to regular employees , and their claim for regularisation will be strengthened in the court of law , if such demands are allowed.

The Committee has further observed that the future survival of the Postal department will largely depend on the successful management of the GDS post offices, which effectively form it’s “soul” and it would be difficult for the department to survive without the “soul”. The Committee felt that the India Post Payment Bank (IPPB) which is going to be rolled out shortly , will use the strength of the GDS network and experiences of more than 2.60 lakhs trustworthy Gramin Dak Sevaks.

Under the new wage structure recommended by the Committee, eleven (11) TRCA slabs are subsumed into three (3) wage scales with two levels each for Branch Postmasters (BPMs) and for other than BPMs. Out of three wage scales , one scale will be common to both categories of GDS. The minimum scale for GDS other than BPM is fixed as 10000 for 4 hours duty and the minimum scale for 5 hours duty is 12000. Similarly, the minimum scale for BPM with 4 hours duty is fixed as 12000 and minimum scale for 5 hours duty is 14500. There will be only three categories of GDS with nomenclature BPM, Assistant BPM and GDS. All GDS working in Branch Post offices (other than BPM) are re-designated as Assistant Branch Post Masters (ABPM). All GDS working in Departmental Post offices are designated as Gramin Dak Sevaks (GDS).

The minimum working hours of GDS is fixed as 4 hours (Level – 1) , instead of 3 hours at present and maximum working hours is 5 hours (Level – 2). Point system for assessment of workload of BPM is abolished. The new wage structure is linked to revenue generation of GDS Branch Post offices. Based on revenue generation , all GDS Post offices will be categorised as A(Green), B (Orange) , C (Pink) , D (Red) and efforts to be undertaken by the GDS BPM and the departmental officers to increase revenue of each category is explained in detail in the report. Committee has recommended that existing TRCA should not be reduced. If the BPM in the category D (which is the lowest category as per revenue earning) is not ready to improve the revenue earning , extension of working hours of Post office , stoppage of increment , withholding of promotion under financial upgradation scheme , relocation of the Post office etc are also recommended. The GDS BPM will be paid a revenue linked additional allowance @10% beyond level – 2 wage scale , if the revenue earned exceeds the limit fixed for category “A” offices. The increment rate recommended is 3%.

The other major recommendations are (a) Composite Allowance comprising of support for hiring accommodation , office maintenance , electricity charges etc (b) Children Education Allowance (c) three promotions (financial up gradations ) on completion of 12 ,24 and 36 years. (c) Enhancement of ex-gratia ceiling and Group Insurance Scheme amount (d) 26 weeks maternity leave for women GDS and one week Paternity leave (e) 30 days General leave (instead of paid leave) with provision for carry forward and leave surrender benefit upto 180 days of accumulated General leave at the time of retirement ( f ) five days Emergency leave like casual leave (g) Minimum one year service for writing promotional examination (h) liberalisation of grants and financial assistance from welfare fund and (h) Risk and hardship allowance.

Regarding Pension, no major change is recommended by the Committee, except increase in severance amount and increase in contribution to Service Discharge Benefit Scheme (SDBS). Similarly, there is no favourable recommendation regarding medical facilities. While recommending that the existing policy of relocation /redeployment should be vigorously pursued to relocate GDS post offices which are not justified as per norms, the Committee had also recommended that the department should not order closing of any GDS post office to further reduce the existing number of GDS post offices. The existing rule that the maximum hours of duty of GDS should not go beyond five hours , is retained by the Committee. There is also a recommendation that two separate unions should be formed for GDS, one exclusively for BPMs and one for all other categories of GDS.

Now comes the question of implementation. Normally Department will appoint a Postal Board Member to study and process the recommendations of the GDS committee for implementation. Then Postal Board has to approve it after seeking the comments of Joint Secretary & Financial Advisor. Then it is to be approved by other nodal Ministries like Department of Personnel & Training, Ministry of Finance, Law Ministry etc. After completing all these process, the final proposal will be submitted to Cabinet for approval.

NFPE & AIPEU – GDS will be making an in depth study of the recommendations and shall submit a detailed memorandum to the Department demanding immediate implementation of the favourable recommendations and also demanding modifications , improvement and rejection where ever required. NFPE & AIPEU -GDS will make sincere effort to get maximum benefits to the GDS. In case Government refuse to implement or dilute the favourable recommendations NFPE & AIPEU GDS will not hesitate to organise serious trade union action including indefinite strike.

All of us should keep in mind that the favourable recommendations of the GDS committee is a product of sustained struggles conducted by the entire Postal employees under the banner of NFPE , AIPEU -GDS , PJCA and Confederation of Central Government Employees and Workers. Let us be ready for the 16th March 2017, one day strike, for further improvement of our service conditions. Let us unitedly fight and shall not rest till our final goal ie; civil servant status to GDS is achieved. No doubt, Kamalesh Chandra Committee report is ONE STEP FORWARD. Let us hope for the best.

Source : http://nfpe.blogspot.in/

Filed Under: , ,

General Budget 2017-18 – NFIR’s proposals for consideration


NFIR’s proposals for General Budjet 2017-18
No.IV/Budget/Part III

23.01.2017

Shri Arun Jaitley,
Hon’ble Minister of Finance,
North Block, New Delhi.

Dear Sir,

Sub: General Budget 2017-18 – NFIR’s proposals for consideration

The National Federation of Indian Railwaymen (NFIR) requests the Hon’ble Finance Minister to consider its proposals listed below for inclusion in the General Budget 2017-18 to be presented in Parliament in February, 2017.

1. The Income Tax exemption limit for Central Government Employees may be raised to atleast Rupees Six Lakhs

2. The Income Tax exemption limit for senior citizens may be raised to Rs.7.5 lakhs and for those Senior Citizens above 75 years age, the exemption be allowed up to Rs.10 lakhs.

3. Transport Allowance presently paid to the Central Government Employees may be exempted from the purview of Income Tax.

4. Fixed Medical Allowance to the retired Central Government Employees may be revised to not less than Rs.2,000/- Per month.

5. Grant House Rent Allowance at the rate of 30%, 20% & 10% of 7th CPC Pay to the Central Government Employees working at Cities/Towns classified as ‘X’ ‘Y’ &’Z’ respectively with back date.

6. Contract Labour performing jobs of perennial nature be granted wages at par with the regular employees performing similar jobs.

7. Child Care Leave for women employees be revised upwardly.

8. Pension parity be granted all those pre 1.1.2016 Pensioners of Central Government.

Proposals – Railway Specific

9. Additional funds be allocated for augmenting Railway Training Institutes and Railway Community Halls, Recreation Clubs etc’.

10. More funds may be provided for construction of new quarters in the Railways and for maintenance of Railway colonies.

11. Training Allowance for Trainers in Railways Training Institules may be enhanced to 30% of pay in lieu of the existing 15%.

12. Separate Rest Rooms for Women Railway Employees at different locations be sanctioned to enable them to stay when they visit on railway duties.

13. Additional Road Mobile Medical Vans may be approved for providing medical treatment to the railway employees and their families living at remote places and jungle stations.

Yours faithfully

(Dr. M.Raghavaiah)
General Secretary

Source:https://drive.google.com/file/d/0B40Q65NF2_7UaEJIVmp2QXVzM0U/view
Filed Under: , ,

Wednesday, January 25, 2017

7th Pay Commission: With an eye on elections, will the Union Budget woo government employees

With the model code of conduct in place, the government could be looking at making a pan-India announcement in its Union Budget that will have an impact on everyone, including the five states going to elections from February 4.

Ahead of the Assembly elections in five states, the BJP-led government at the Centre has been directed to not announce any schemes in the Union Budget which can influence voters in the poll-bound states.

The Election Commission said the direction to the Central government is in the interest of free and fair elections and to maintain a 'level playing field during elections'.

PAN-INDIA ANNOUNCEMENT

An announcement on the Seventh Pay Commission's recommendations on allowances cannot be ruled out. The Seventh Pay Commission proposed a 138.71 per cent hike in housing allowance (HRA) and 49.79 per cent for other allowances, while junking 53 of the 196 allowances and suggesting moderation in several others.

The commission's recommendations will benefit 47 lakh Central government employees and 53 lakh pensioners.

After the pain of demonetisation and a long wait for pay increase, a hike in allowances for employees in the Union Budget can win the Narendra Modi government a huge applause ahead of the Assembly elections in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa.

THE MATH OF IT

On the financial front, the Pay Commission estimated that during the current fiscal a hike in allowances would add a burden of 29,300 crore (Rs 17,200 crore under HRA and Rs 12,100 crore under other allowances) on the government.

The Narendra Modi government has recorded impressive figures for tax collection in the first half of the fiscal. The total direct and indirect tax collections at the end of August last year stood at Rs 5.25 lakh crore.

Further, the government is eyeing a 12.64 per cent growth from direct tax to Rs 8.47 lakh crore in the current fiscal, and 10.8 per cent growth to Rs 7.79 lakh crore from indirect tax.

The Union Budget last year had already earmarked Rs 70,000 crore for the implementation of the Seventh Pay Commission. As per government estimates, the financial impact of implementing the pay commission recommendations in the 2016-17 fiscal is likely to be Rs 1.02 lakh crore.

According to a Bank of America Merrill Lynch (BofA-ML) report, the Modi government is likely to add Rs 1 lakh crore to its coffers in the form of additional taxes under the Income Disclosure Scheme II (IDS II). Under this scheme, black money hoarders have time till March to come clean by paying 50 per cent tax on deposits of old currency post demonetisation.

"This should allow Finance Minister Arun Jaitley to hold the FY18 fiscal deficit at 3.5 per cent of GDP--same as FY17's--and at the same time fund the 7th Pay Commission and recapitalise PSU banks, without cutting back on public capex," the BofA-ML report said.

Source:http://indiatoday.intoday.in/story/7th-pay-commission-union-budget-government-employees-allowances/1/866172.html

Streamlining implementation of the NPS as per 7th CPC Recommendation: JCM writes to NPS Committee

National Council (Staff Side)
Joint Consultative Machinery
of Central Government Employees
Shiva Gopal Mishra
Secretary

No.NC-JCM-2016/ Pension

Dated: January 20, 2017

The Secretary(Pension)
Chairman,
NPS Committee
Deptt. of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan,
New Delhi

Sub: Meeting of the Committee constituted to suggest measures for streamlining implementation of the NPS for the Central Govt. Employees — Reg.

Ref.: Letter No 57/1/2016-P&PW(B) dated 16th January 2017

Sir,

Kindly refer to your aforementioned letter. At the outset, we request you to kindly favour us with a copy of the Government Notification setting up the Committee to make suggestions to streamline the National Pension system for Central Government employees. This is needed for us to understand the scope and ambit of the functioning of the Committee.

The 7th CPC in their report in paras 10.3.11 to 10.3.25 has enumerated the plethora of complaints received by it over the NPS and has finally recommended to the Government to set up a Committee to look into those issues and address. However, we are constrained to believe from the reading of para 3 of the letter cited that the Committee is likely to have only a perfunctory consultation with the stake holders on an important issue like this.

In any case, we give hereunder our views in the matter with the fervent hope that the Committee will consider it within the time constraints.

1. We are of the firm view that the Central Government employees as a whole must be fully excluded from the ambit of the defined contributory pension scheme for otherwise it would create two classes amongst them, one making subscription; and another making no subscription but receiving a better pension and other retirement benefits.

2. There is no justification for the Government to deduct pension contribution from the Central Government employees, even as per the recommendation of the 7th CPC they are provided with far lesser Minimum wage that what it should have been as per the norms of Dr. Aykroyd formula, approved by the 15th ILC and subsequent judgement of the Supreme Court.

3. This apart, we were assured by the Government during the Standing Committee meeting discussions held on 14.12.2007 that

“for employees who had entered with effect from 1.1.2004 are not likely to be worse off vis a vis the current pension system in force as the replacement rate would match to the present one. Thus, NPS is a win-win situation for employees and the Government”.

Without deviating even an iota from our firm position enumerated in No. 1 above, the least the Government must do to honour the assurance given earlier is to guarantee that all Central Govt. employees who are recruited with effect from 1.1.2004 and have thus become mandatory subscribers to the NPS receive all benefits of pension, family pension and other retirement benefits as is provided for under the CCS(Pension) Rules applicable to the Central Government employees who are recruited prior to 1.1.2004.

To illustrate the point that the Central Government employees, who are recruited with effect from 1.1.2004 are provided with a paltry in the form of pension in total disregard to the assurance held out by the Government on 14.12.2007 we enclose herewith the details of pension entitlement computed in the case of a person, who was recruited after 1.1.2004 and retired after 12 years of service in one of the Ordnance factories under the Ministry of Defence. This person is being paid a paltry amount of Rs 9601= p.m. as pension from NPS, whereas after the implementation of the 7 CPC recommendations the minimum pension is Rs 9000/- + DA p.m. with effect from 01-01-2016.

In fine, we feel that it would be better if the Committee could convene a meeting as is convenient to all its members so that a full-fledged discussion could be held on this vital issue which is of utmost importance to a large segment of employees recruited after 01-01-2004 whose number is increasing day by day.


Sincerely yours,

(Shiva Gopal Mishra)
Secretary (Staff Side)
National Council(JCM)

Source: http://ncjcmstaffside.com/
Filed Under: , ,

High Level Committee for 7th CPC Minimum Wage & Multiplication Factor-NC JCM

 Shiva Gopal Mishra
Secretary National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi - 110001

No.NC-JCM-2016/7th CPC                            Dated: January 17, 2017


Shri Rajnath Singh,
Hon’ble Home Minister,
North Block
New Delhi

Dear Sir,

We solicit your kind reference to the discussion the Staff Side delegation had with you and your esteemed colleagues in the Cabinet – Hon’ble Finance Minister, Railway Ministers – on 30th June 206 and subsequently with your good self on 6th July 2016. In the light of the assurance held out for reconsideration of the minimum wage and multiplication factor through the setting up of a high level committee within a time frame of four months, the National JCA had deferred the strike action which was to commence from 11.07.2016.

We had been patiently waiting for a meaningful discussion in the matter ever since then. Not only there had been any worthwhile or meaningful discussions thereafter but no settlement was also brought about till today though more than six months have been elapsed.

The National JCA met yesterday (17-01-2017) and almost all members expressed extreme disappointment over the turn of events. However, they felt that a meeting with your good self must be sought to sort out the issue amicably.

We shall therefore be grateful if you can indicate a date and time convenient to you, so that the undersigned along with Dr. M Raghaviah, the Leader of Staff Side, JCM could call on you with a view to explore reaching an agreement. Incidentally, we feel that it must be our responsibility to convey to you that the Central Govt Employees throughout the country are extremely critical of the fact that the Government had not found it possible to accept even a single issue taken up the Staff Side, JCM after the 7th CPC submitted its recommendations to the Government.

This apart, the CG Pensioners numbering presently more than the working employees are aggrieved of the fact that the one and only recommendation of the 7th CPC which was in their favour i.e. option No.1 have been recommended to be rejected by the Pension Department to the Government.

Expecting a communication for an early meeting and thanking you.

Sincerely yours

(Shiva Gopal Mishra)
Secretary (Staff Side)
National Council (JCM)

Source: http://ncjcmstaffside.com/2017/secretary-staff-sidejcm-writes-to-shri-rajnath-singh-about-the-demands-of-central-government-employees/

Postponement of the one day strike from 15th February 2017 to 16th March 2017.


Ref: Confdn/Strike/2016-19                                         Dated – 23rd January 2017

To,

The Cabinet Secretary
Cabinet Secretariat
Government of India
Rashtrapati Bhawan
New Delhi – 110001

Sir,

Sub:- Postponement of the one day strike from 15th February 2017 to 16th March 2017.

Ref:- Our strike notice dated 28.12.2016.

Kindly refer to the notice served by us on 28th December 2016, for one day strike of Central Government employees on15th February 2017. (copy enclosed for ready reference). This is to inform you that due to the notification of election to five state assemblies by the Elected Commission of India, the proposed strike on 15th February 2017 is postponed to 16th March 2017. The Charter of demands in pursuance of which the employees will embark upon the one-day strike action is enclosed.

Yours faithfully,

 
(M. Krishnan)
Secretary General
Mob: 09447068125

Email: mkrishnan6854@gmail.com


Click here to view - Previous strike notice & Charter of Demands

"TRUST SHALL NOT BE BETRAYED-CONFEDERATION

7th Central Pay Commission has quoted in para - 1.29 of " Foreword " , the following observations of the Supreme Court in the case of Bhupendranath Hazarika and another Vs State of Assam and others (reported in 2013 (2) Sec 516).

"It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair.......... A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness ; then only the concept of good governance can be concretized. We say no more."

Unfortunately, the NDA Government and the Group of Ministers consisting of Sri Rajnath Singh, Hon'ble Home Minister, Sri Arun Jaitley, Hon'ble Finance Minister, Sri Suresh Prabhu, Hon'ble Railway Minister who gave assurance on 30th June 2016 that Minimum wage and Fitment formula will be increased and a High Level Committee will be Constituted with a time - frame of four months , have given least concern for the above observations of the Apex Court. Now seven months are almost over. Further there is no guarantee that Allowance Committee will increase the percentage of HRA recommended by 7th CPC. Instead there is every chance, to deny retrospective effect from 01.01.2016 to the revised allowances and it may be implemented prospectively from 01.01.2017 or 01.04.2017, thus denying the eligible arrears for one year or more. It has become certain that the Option - 1 for pensioners recommended by 7th CPC, which is the one and only favourable recommendation, stands rejected. Orders on abolition of Advances including Festival advance and imposing "very good " condition for MACP are issued unilaterally .

Request of the JCM National Council Staff side Secretary to give one more opportunity to present it's case before the Allowance Committee is not conceded by the Finance Secretary, who is the Chairman of the Committee. The request of the JCM Staff side to modify the Terms of Reference of Anomaly Committee is also not yet considered by the Department of Personnel and Training. The Committee constituted for New Pension Scheme is only for streamlining the NPS by making some cosmetic changes as recommended by 7th CPC and not for considering the demand of the JCM Staff side to scrap NPS. Not even a single demand of the staff side submitted to Cabinet Secretary on 10th December 2015, requesting modifications in the recommendations of 7th CPC is settled by the Government. The so-called group of senior officer's committee had, in fact, ridiculed and humiliated the JCM Staff Side standing committee.

The All India Conference of the Confederation of Central Government Employees & Workers held in August 2016 at Chennai had taken a decision to request all constituents of NJCA to revive the indefinite strike , if Government is not ready to honour it's commitment before 30th October 2016.  The AIC had further decided that, in case NJCA is not ready to revive the deferred indefinite strike, then Confederation should organise independent trade union action including strike. Confederation strongly feels that there in no meaning in waiting indefinittely for Government's decision. We cannot cheat the employees like NDA Government. As no consensus decision could be taken in NJCA, Confederation had decided to  go for one day strike and organised country wide demonstrations, mass dharnas and massive Parliament March. Strike notice for one day strike on 15th February 2017 was served on 28th December 2016. Due to announcement of assembly elections in five states by Election Commission of India and 15th February being a polling day, the strike was postponed to 16th March 2017.

Intensive campaign and mobilisation is going on in full swing all over the country. About 13 to 15 lakhs Central Government employees will participate in the strike, with the full support and solidarity of about 34 lakhs pensioners, Central Trade Unions, independent Federations of State Government employees, Bank and Insurance employees and other public sector employees.

After reviewing the participation of employees in the one day strike, Confederation shall explore the possibility of declaring higher form of trade union action including indefinite strike .


M. KRISHNAN
Secretary General
Confederation
Mob & WhatsApp : 09447068125
Email : mkrishnan6854@gmail.com

Source:http://confederationhq.blogspot.in/
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Prime Minister’s Shram Awards for the year 2015 Announced

The Government of India today announced the Prime Minister’s Shram Awards for the year 2015 to be awarded to 56 workers employed in the Departmental Undertakings & Public Sector Undertakings of the Central and State Governments and Private Sector Units employing 500 or more workers in recognition of their distinguished performances, innovative abilities, outstanding contribution in the field of productivity and exhibition of exceptional courage and presence of mind.

This year, no nomination was found suitable for the presitigious Shram Ratna Award. Four nominations for the Shram Bhushan Award, twenty four nominations for Shram Vir/Shram Veerangana and twenty eight nominations for Shram Shree/Shram Devi Awards have been selected. Even though, the total number of Shram Awards is 33, the number of workers receiving the Awards is 56 (Including 3 women), as some of the Awards have been shared by workers or  teams of workers consisting of more than one worker. These include 40 workers from the public sector and 16 workers from the private sector.

SHRAM BHUSHAN

Total number of Shram Bhushan Awardees are four. It carries a cash award of Rs. 1,00,000/- and a ‘Sanad’.  Four nominations including one female were found suitable for the Shram Bhushan Award. They are Shri M. Ramakrishnan, BHEL, Smt. Abhilasha Pethe,  SAIL, Shri. Shyamsundar Gangaam Padekar,  L&T Ltd. Mumbai and Shri Ratan Kumar Shamrao Kamble,  Bajaj Auto Ltd., Aurangabad.


SHRAM VIR/VEERANGANA
Total number of Shram Vir/Shram Veerangana Awards are twelve. It carries a cash award of Rs. 60,000/- and a ‘Sanad’.  Total number of Shram Vir/Shram Veerangana Awardees are twenty four including one female. The Shram Veer/Veerangana Shram Awards in respect of Public Sector Undertaking and Private Sector are given to Shri Kumburu Kalyana Chakravarthi, Rashtriya Ispat Nigam Ltd., Visakhapatnam, Shri R. Natarajan, Shri G. Venkateswaralu, BHEL, Trichy, Shri Jitendra Singh, BHEL, Bhopal, Shri Manish Pandya, Shri Manish Deshpande, Shri Vilas Kumar Jha, Shri Jagdeo Ram Mourya, Shri P. Tata Rao, SAIL, Bhilai Steel Plant, Shri Jagannath Shaoo, Shri Alok Kumar Jena, Shri Devendra Bhujabal, Shri Banamali Pradhan, Shri Manas Ranjan Panda, Shri Pradeepta Kishore  Pradhan, Shri P. Kabindra Kumar Patra, SAIL, Steel Authority of India Ltd., Rourkela, Shri Vinod Kumar, Shri Rajbir Singh, BHEL, Haridwar, Shri Geetesh Seetesh, TATA Steel Ltd., Jamshedpur,  Shri Nimesh Hasmukhbhai Darji,  Gujrat Narmada Vally Fertilizers, Bharuch, Shri Suhail A.K., Apollo Tyres Ltd., Chalakudy, Kerla, Shri Dnyandeo Hari Patil,   L&T Ltd. Mumbai, Shri Hirekar Santosh,   Brahmos Aerospace, Hyderabad and Smt. Arti Bala, Tata Steel Ltd., Jamshedpur.

SHRAM SHREE/DEVI

Total number of Shram Shree/Shram Devi Awardees are sixteen. It carries a cash award of Rs. 40,000/- and a ‘Sanad’. Total number of Shram Vir/Shram Veerangana Awardees are twenty eight including one female. The Shram Shree/Shram Devi awardees in respect of Public Sector Undertakings and Private Sector are Shri  Mandem Subrahmanya Kumar, Rashtriya Ispat Nigam Ltd., Visakhapatnam, Shri Manohar Singh Taragi, Shri Shyam Bihari, BHEL, Haridwar, Shri Jasbir Singh, Shri Mannu Lal Thakur, Shri Pradyumna Singh, Shri Surendra Puri, Shri Shivgopal Bhandari, Shri Padman Lal Sahu, SAIL, Bhilai Steel Plant, Shri Prasanta Kumar Naik, SAIL, Rourkela Steel Plant, Shri Chodisetti Balaji, Shri Ravi Venkateswara Rao, BHEL, Hyderabad, Shri Amar Singh, Shri Rajkamal Kumar Chauhan, BHEL, Haridwar, Smt. Bindu Kurup,  SAIL, Bhilai Steel Plant, Shri Mahesh  Kumar Khodake, Shri Ravi Narayan, Shri Dilip Kumar Rautkar, Shri Ghanshyam Prasad Aneshwari, Shri  B.M. K. Agrawal, SAIL, Bhilai Steel Plant, Shri Arvind Kumar, TATA Steel Ltd., Jamshedpur,  Shri Kunj Bihari Jaishankar,  TATA Steel Ltd., Jamshedpur, Shri Vishvanath Savata Jadhav, Bajaj Auto Ltd., Aurangabad,  Shri Satpal Singh,  TATA Steel Ltd., Jamshedpur , Shri V. Brahmam Achary,  J.K. Paper Ltd. Odisha,  Shri K. Ram Prasad, Brahmos Aerospace, Hyderabad, Shri Bijan Kumar Roy, TATA Steel Ltd., Jamshedpur and Shri Purusotam Reddy Ch.,  TATA Steel Ltd., Jamshedpur.

Source:http://www.pib.nic.in/newsite/erelease.aspx?relid=0