UP government scraps deferred allowances, and more

LUCKNOW: After initially deciding to defer payment of six categories of allowances to its employees and teachers for a year, the state government has scrapped them altogether.

The government also scrapped some other allowances, including the one paid for promotion of e-governance in all the departments of the secretariat.

A decision to scrap these allowances was taken by the state cabinet, by circulation, here on Monday.

“A review of the allowances stopped, or not existing, at the centre and permissible in state was carried out following decline in state government’s revenue in view of the fight against Covid-19,” said additional chief secretary, finance, Sanjiv Mittal while issuing four separate orders scrapping the allowances, including one paid for maintenance of provident fund accounts.

The government hopes to save an additional sum of Rs 1,500 crore per annum by scrapping these allowances.

It has already decided to freeze the dearnance allowance and dearness relief paid to its employees, teachers and pensioners from January 1, 2020 to June 30, 2021 to save about Rs 10,500 crore in 2020-2021.

Quoting an order of IT and electronics department, Mittal said: “Under prevailing circumstances, there appears no justification for payment of promotional allowance to two officers of joint secretary and special secretary rank for development of e-governance in all departments of the secretariat.”

“There is no justification to continue with the allowances when they do not exist at the centre,” said a senior officer.