BHUBANESWAR: As there are hectic political activities in both the BJD and BJP camps pointing towards early polls, the State Government is busy working out means to pay salary to the employees as per the 7th Pay Commission recommendations in a bid to woo them ahead of next election. Additional burden on the State exchequer for implementation of the 7th Pay Commission will be around `5,500 crore. The backlog will be around `10,000 crore by the time of the payment as per the new payscale. The Commission report will be implemented with retrospective effect from January 1, 2016.
Though Chief Minister Naveen Patnaik will decide as to when the employees will get salary as per the new pay scales, official sources maintained that it will be most probably before the puja festivals. However, in view of the tight financial situation, as portrayed by the State Government, it is yet to be decided how to pay the backlog amount. Meanwhile, the Government has already received the fitment committee report and is examining it.
The fitment committee was headed by Development Commissioner R Balakrishnan. The report was finalised after considering representations from employees’ associations and other stakeholders. The finances of the Government are going to improve following the solution to the tax dispute with the Indian Oil Corporation Limited (IOCL). Sources said as per the new arrangement, the State Government is likely to get `1,500 per annum from the IOCL’s Paradip Refinery even though it will have to provide only `700 crore interest- free loan to the corporation. Sources said the issue of payment of salary in new payscales will be discussed by the Cabinet in one of its next meetings. A cabinet meeting is likely to be convened in this regard before next session of the Assembly which is scheduled to begin from September 7.
Fiscal burden
Additional burden on the State exchequer for implementation of the7th Pay Commission willbe around D5,500 crore
● The backlog will be around D10,000 crore by the time of the paymentas per the new payscale
● The Commission report will be implemented with retrospective effect from January 1, 2016
● A cabinet meeting is likely to be convened in this regard before next session of the Assembly