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6th Central Revised Pay Begins To Take Its Pound Of Flesh, State Running Into Crores Of Deficits

IMPHAL, Mar 4: Subsequent upon the implementation of the 6th Central Revised Pay, the State Government has started running into deficits amounting to Rs 83 crores every month.

If the present trend continues and the Centre refuses to release at least Rs 500 crores as advanced Plan Assistance, State Government employees may not receive their monthly salaries regularly or in time from the month of June.

Talking to The Sangai Express, a top official of the Finance Department said that the financial position of the State has become very grave since the implementation of the 6th Central Revised Pay.

The situation has come to such a pass that development funds must be diverted to payment of salaries to employees.

With the implementation of the 6th Pay, the State Government is spending Rs 283 crores every month to meet salaries of 65,000 regular employees, 3,477 contract employees and 34,000 pensioners. Earlier, the State Government had to spend only Rs 152 crores in paying monthly salaries and pension.

On the other hand, the State can manage to collect only Rs 200 crores per month from the State’s resources, central tax, non- plan revenue, deficit grant etc.

As such, the State Govt is running into deficits of Rs 83 crores every month.

The annual revenue collected by the State from its own resources is only Rs 300 crores. Literally, the State survives with the assistance provided by the Centre, the official said.

Further, the Government had already assured its employees to pay Rs 600 crores as arrear for three months in June this year.

Whereas assistance from the Centre is diminishing, the 13th Finance Commission is refusing to sanction enough funds to cover the increasing gap in the non-plan sector. All these factors have compounded the financial woes of the State.

The official said that other Northeastern States have also started facing financial problems following implementation of the 6th Central Pay in their states.

Taking due note of the plummeting financial position of the State, the Chief Minister, during his meeting with the Finance Commission members on February 21, appealed for release of Rs 300 crores as advanced Plan Assistance for the current and the next financial years.

Acting on the Chief Minister’s request, a committee of the Finance Ministry headed by Planning Commission Joint Secretary (Financial Resource) TK Pandey has been constituted.

The committee would look into the financial position of the State and submit a report to the Planning Commission on March 31.

With the deficits accumulating every month, the State would not be in a position to pay monthly salaries to employees from June in case the Planning Commission refuses to release Rs 600 crores as advanced Plan Assistance at the earliest, the Finance Department official said.

The State faced a similar situation, when the then Nipamacha led United Front Government decided to implement the 5th Pay Commission in the late 90s, crippling all developmental works as development funds had to be diverted to pay the salaries of Government employees.

(Courtesy: The Sangai Express)

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2 Responses to " 6th Central Revised Pay Begins To Take Its Pound Of Flesh, State Running Into Crores Of Deficits "

  1. rojit soibam says:

    If they are able to manage the financial problems of the state then why keep on holding the post/chair, let others who are ABLE try it.

  2. The time is not right for the 6th pay.If a person started exercising with heavy weight to make himself look strong without consulting physician first he will land into serious side-effect.

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