Expert panel report likely to hit Punjab employees hard

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CHANDIGARH : The recommendations of an expert group led by Planning Commission former deputy chairman Montek Singh Ahluwalia are going to hit the government employees in Punjab hard, if the report is implemented in toto or partly.

In the report, the 21-member panel, which was tasked to suggest measures for revival of state’s Covid-hit economy, has asked the state government to bring down the salary structure of all future employees to the level of central pay scales and rationalise the pay given to the existing staff members.

Also, it recommended to increase professional tax to ₹20,000 per year, an increase of 8 times from the existing ₹2,500.

Recognising that the state government’s pay scales are much higher than that offered by the Centre, the Montek committee recommend “to implement only the central pay scales”.

There are at least 3.5 lakh employees on the rolls of the Punjab government, including that of state undertakings, boards and corporations.

The state government spends a whopping ₹2,300 crore every month (₹27,600 crore annually) on payment of their salaries.

Also, the committee has suggested medium- and long-term post-covid economic strategy for the state.

The final report is expected by December 31.

“The higher pay scales of the existing employees need not be

reduced. They should not be given any additional payments until the central pay scales catch up with the current salaries. The immediate impact of this measure on expenditure will be limited, but it will lead to an improvement over time,” the report says.

“There is no justification for a salary cut. Why don’t the chief minister and his cabinet colleagues cut their expenditures? Why they approve hefty salaries for themselves? The politicians should lead by example and make efforts be plug loopholes in revenue collection,” said Sukhchain Khehra, president of the Punjab Civil Secretariat Staff Association.

The report says that various administrative departments have voluntarily agreed to reduce their “appropriations” by ₹1,625.87 crore.

It has suggested the government to defer salaries by varying percentages on the lines of other states. Neighbouring Haryana is paying salaries on weekly basis with a different employee sections getting salary every week, it was noted.

On increasing professional tax, the report says the state government should send a representation to the Centre and the Finance Commission that there is no justification for keeping the ceiling fixed for 32 years.