Published On: Mon, Nov 21st, 2016

Demonetisation drive disappoints on higher allowances

New Delhi: On November 8, Prime Minister Narendra Modi launched a crackdown on black money, demonetising Rs 500 and Rs 1,000 notes.

The Finance Minister Arun Jaitley will have to wait for the situation to normalize to receive report on higer allowances.

The Finance Minister Arun Jaitley will have to wait for the situation to normalize to receive report on higer allowances.

Twelve days after after the announcement was made, there seems to be no little respite for those thronging ATMs and banks to withdraw or exchange what is now illegal tender.

The queues before banks and ATMs will not ease in a few days, may not be in few weeks, so the top Finance Ministry officials today told The Sen Times that the higher allowances of the central government employees may not be decided till December 30.

“The central government employees have to wait for a few weeks as the demonetisation drive is open till December 30” the officials said.

The Supreme court also said that a large number of daily wagers, carpenters, vegetable sellers and others engaged in menial jobs, who earn their bread and butter on a daily basis, were badly affected by the demonetisation drive.

“Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not announce higher allowances to save demonetisation chaos,” they added.

The ‘Committee on Allowances’, which was set up in July this year on the direction of the cabinet, is looking into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations, has already given final touch to its report. The committee met up with the deadline of four months given to it by the cabinet to submit the report, the Finance Ministry officials revealed.

“We are ready to submit our report, when the Finance Minister Arun Jaitley calls up,” the committee on allowances head Finance Secretary Ashok Lavasa said recently.

“The Finance Minister will have to wait for the situation to normalize to receive report on higer allowances,” the officials added.

Until acceptance of new allowances, existing allowances are to be paid according to the existing rates under the existing pay structure, says an earlier official statement issued by the finance ministry.

The 7th pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The central government employees and pensioners got theirs arrears of basic pay and pension in one go in August salaries and pension respectively for implementation of the 7th Pay Commission recommendations effective from January 1, 2016.

They also got 2 per cent Dearness allowance (DA) in new pay matrix effective from July 1, 2016.

TST

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