Over Rs30,000 crore is likely to be spent from the State Exchequer annually if the salaries and pensions are hiked in Odisha on the basis of the Seventh Pay Commission’s (SPC) report.
While the State Government is expecting the burden to be over Rs28,000 crore after the implementation of the SPC, the annual expenditure towards increased salaries and pensions is likely to be more than Rs50,000 crore if all the vacant posts are filled up in the State.
The pay will be hiked soon for the Central Government employees on the basis of the SPC report. The Odisha Government employees are eager to get the benefit from the commission’s recommendations.
The SPC recommendations are likely to be implemented by the Centre in July or August after making extensive reviews of the report. The State Government employees would be benefited later.
If the commission’s report is approved by the Union Government, the minimum salary is likely to be Rs22,000 and the minimum pension will be Rs10,000.
While the employees are putting pressure on the Union Government for hiking the salary on the basis of the report, the Government has allocated funds in advance in the Union Budget this year.
In view of the SPC report, the Odisha Government has allocated over Rs28,000 crore in the State Budget this year. While Rs18,800 crore has been earmarked only towards salary of the State employees, a provision of Rs9,500 crore has been made for pension holders.
The expenditure towards State employees’ salaries and pensions has increased five times in the past 15 years. While the Government was spending Rs3,803 crore towards salaries and allowances and Rs832 crore towards pensions during 2000-01, the expenditure was Rs9,442 crore and Rs3,283 crore towards salaries and pensions, respectively in 2009-10.
Despite restrictions in the appointments in Government jobs, the State spent Rs13,031 crore towards salaries and pensions and Rs6,417 crore on other retirement benefits during 2014-15.
Experts, however, are of the view that the allocated amount in the State Budget towards salaries and pensions for implementation of the SPC report will not be adequate. The Government may have to allocate more towards it in the Supplementary Budget.