New Delhi: The committee on allowances’s term was extended till February 22, 2017 to give its report on higher allowances for nearly 48 lakh central government employees.
The committee, 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, was given four months by the Union Cabinet to complete its task.
“The government gave its approval for the extension of the term of the committee on allowances up to February 22, 2017,” an official statement said.
On the other hand, the committee on allowances head Finance Secretary Ashok Lavasa said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”
It seems that financial activities after demonetisation compels the government to extend to obtain higher allowances report for getting normalized the position and the notification of higher allowances is likely to be issued in the beginning of next financial year, after the the cash crunch will ease.
Existing allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.
The 7th pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
The hike in basic pay under the 7th Pay Commission was implemented in August with effect from 1 January, 2016.
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