GANGTOK, 06 Jan: The Cabinet, at a recent sitting, approved and sanctioned the release of around Rs. 60 crore to clear the hiked Dearness Allowance due to State Government employees for the last six months, sources inform. The DA, it is informed, was raised to 7% in July 2012. The Rs. 60 crore sanction is reportedly to clear the accumulated arrears for the six months that the new DA rate has been in place.
It is informed that the government required approximately Rs. 60 crore in order to pay its over 30,000 strong employee force its due DA. Officials inform that the government had been looking at various ways for resource mobilization and it is informed that a major reason why the State’s finances were not looking too good was because several of the main revenue-generating sectors have not performed as well as expected [as a result of the combined impact of a global economy in recession and the 18 Sept 2011 setback].
The other reason put forward is the advance salary payment which had to be made to the teachers before the school holidays begin. As per official estimates this advance payment itself comes to around Rs. 70- 80 crore; the teacher population itself is around 6,000 to 7,000 strong.
The state government had been looking towards revenue mobilization since July this year. It seems to have finally paid off; however it is also nearing time for the next DA increment announcement which usually takes place at the time of the new financial year. Several measures, officials inform, had been taken to get major revenue earning sectors on track. The main three areas or revenue earning departments are Power, Commercial Taxes and the Lottery departments.
About Rs. 100 crore annually is the target set for the Power Department as revenue but it has fallen short of this figure. In fact the Power sector has underperformed, officials state, and this despite the increase in power tariff to 6 %. The Commercial Taxes department has also not been able to collect various fees and taxes thus failing to meet its target as well. Full revenue collection from the Lottery sector has also not materialised as projected.
The state government, especially the Finance department, it is informed, had convened meetings with these departments and others as well in order to sort out problems and to direct them to implement corrective measures.
The state government had earlier this year increased the DA of employees to 7% keeping in mind the similar DA rates for central government employees. The fourth state pay commission had recommended that DA for state employees should be the same as that of central employees.
It is informed that the government required approximately Rs. 60 crore in order to pay its over 30,000 strong employee force its due DA. Officials inform that the government had been looking at various ways for resource mobilization and it is informed that a major reason why the State’s finances were not looking too good was because several of the main revenue-generating sectors have not performed as well as expected [as a result of the combined impact of a global economy in recession and the 18 Sept 2011 setback].
The other reason put forward is the advance salary payment which had to be made to the teachers before the school holidays begin. As per official estimates this advance payment itself comes to around Rs. 70- 80 crore; the teacher population itself is around 6,000 to 7,000 strong.
The state government had been looking towards revenue mobilization since July this year. It seems to have finally paid off; however it is also nearing time for the next DA increment announcement which usually takes place at the time of the new financial year. Several measures, officials inform, had been taken to get major revenue earning sectors on track. The main three areas or revenue earning departments are Power, Commercial Taxes and the Lottery departments.
About Rs. 100 crore annually is the target set for the Power Department as revenue but it has fallen short of this figure. In fact the Power sector has underperformed, officials state, and this despite the increase in power tariff to 6 %. The Commercial Taxes department has also not been able to collect various fees and taxes thus failing to meet its target as well. Full revenue collection from the Lottery sector has also not materialised as projected.
The state government, especially the Finance department, it is informed, had convened meetings with these departments and others as well in order to sort out problems and to direct them to implement corrective measures.
The state government had earlier this year increased the DA of employees to 7% keeping in mind the similar DA rates for central government employees. The fourth state pay commission had recommended that DA for state employees should be the same as that of central employees.
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