Economic slowdown may take toll on new PRC to employees

Hyderabad: While the Telangana State government is getting ready to enforce the revised pay scales under new PRC (Pay Revision Commission) for all 3 lakh government employees before municipal elections to be held by this year end, the economic slowdown may shatter the dreams of the employees, who are waiting for big bonanza under the new PRC.

Officials of the Finance department say that current financial position will not permit the government to sanction not more than 20 per cent fitment as against the demand for above 40 per cent by the employees.

After Chief Minister K Chandrashekar Rao directed the PRC, the first pay revision body constituted after the formation of Telangana State to submit its report within 10 to 12 days, the Finance department began analysing the current financial status of the State and the government readiness to bear the burden of enhanced pay scales of the employees under the new PRC.

Officials of the Finance department said that the government was facing severe financial crunch due to enhancement of the benefits extended to the farmers under the Rythu Bandhu and the doubled pension amount for the poorer sections from this financial year.

On the other hand, the tax collection has gone down due to economic slowdown mainly the slump in automobile and other manufacturing and services sectors at national and global level.

"It is a tough task before the government to implement the new PRC without finding alternative revenue generation sources to meet the growing financial needs in the next one year until the recession impact is receded," a senior government official said that it required at least Rs 3,000 crore additional funds to implement the PRC with 20 to 25 per cent fitment every year.

The government employees were demanding more than 40 per cent fitment which is not possible in the present circumstances as it requires more than Rs 5,000 crore per annum. The first option before the government to implement the new PRC is to cut the scheme expenditure and divert the funds for the payment of salaries.

The other option before the government is to meet the new PRC burden by increasing the taxes within the State purview mainly the enhancement of fuel tax and liquor prices.

Judicious use of financial resources is already under execution and the capital expenditure was also reduced, officials said, adding that an outcome on the finalisation of the fitment under new PRC will come only after the government and employees' unions arrived at a consensus.

Soon after the 3-member PRC headed by CR Biswal submitted the report, the chief minister will call for a meeting with employees' unions by this November end to finalise the new pay scales which would have to be implemented from July last year.

Due to delay in the submission of the report, government deferred the implementation of the new wage structure since 18 months.