Taking a cue from the Centre, the Uttar Pradesh government put six allowances payable to different categories of officers and employees on hold in the current financial year.
Toeing the Central line, the state government also decided to freeze dearness allowance (DA) up to June 30, 2021.
These steps were prompted by a decline in state government’s revenue due to COVID-19 lockdown and the need for funds to fight the pandemic. These measures would lead to a saving of about Rs 12,000 crore till June-end next year.
The six categories of allowances that have been deferred from April 1, 2020 to March 31, 2021 include city compensatory allowance, secretariat allowance, special allowance given to CB-CID, Anti-Corruption Organisation, Economic Offences Wing, Vigilance Establishment, Security and Special Investigation Wing. special allowance paid to junior engineers, research allowance, orderly allowance and design allowance paid in Public Works Department (PWD) along with investigation and planning and orderly allowance paid to officers and employees working with Irrigation department.
“A sum of about Rs 1,500 crore will be saved by the decision to defer payment of six categories of allowances in 2020-2021. A sum of about Rs 7,500 crore is likely to be saved by freezing DA (if calculated on the basis of 4% increase) in 2020-21. If the same rate of DA increase is calculated for the remaining months of 2021-2022 (up to June 30, 2021), the total saving is likely to cross Rs 12,000 crore-mark following the decision to freeze DA,” said a Finance department officer.
In an order issued on April 24, 2020, Additional Chief Secretary (Finance) Sanjiv Mittal said: “The Uttar Pradesh government’s revenue has come down following COVID-19 lockdown. At the same time in view of the decision to make funds available to carry out works to check spread of COVID-19 pandemic, I have been directed to say that the Governor is pleased to defer the following allowances approved by any previous government order for employees of the state government, teaching and non-teaching employees of the basic education board and aided educational institutions and those working with autonomous bodies.”
In another order with regard to payment of DA to state government employees and dearness relief to pensioners, Mittal said that no additional instalment of DA and dearness relief will be paid from January 1, 2020, July 1, 2020 and January 1, 2021. No arrears of DA or dearness relief will be paid from January 1, 2020 to June 30, 2021.
Meanwhile, UP State Employees’ Joint Council opposed the state government’s move. Employees’ Council chairman JN Tiwari said that the decision would affect about 20 lakh state employees. He urged the chief minister to cut a day’s salary every month for UP Covid Care fund, instead of deferring the payment of allowances.