Tuesday, 17 November 2015

Impact of 7th pay commission very different from last one

Impact of 7th pay commission very different from last one

With investments sluggish and unlikely to pick up for another year or two, many are now betting on a recovery in consumption demand to bump up GDP. The feeling is falling interest rates will prompt purchases of homes and cars, and that central government employees could turn out to be big buyers once their bank accounts have been credited with funds following the recommendations of the 7th Pay Commission. Savings to households from lower prices of oil are expected to free up cash for discretionary spends while a higher MSP (minimum support price) for wheat, if that happens, will boost farm incomes.

However, for a variety of reasons, the rise in consumption-demand this time around may not quite match the spurt seen when the 6th Pay Commission’s recommendations were implemented. As Kotak Institutional Equities points out, the economic environment at the time—the report was implemented in 2008 but effective from January 2006—was far less challenging than currently and there were many other factors that contributed to the surge in consumer demand, none of which is present today. Halving of excise duties—from 16% to 8% between February 2008 and 2009—allowed auto firms to drop prices, and a 425 bps cut in the policy rate in a span of just seven months made money significantly cheaper. Both moves were part of a stimulus package meant to revive demand after the global financial meltdown and resulted in a fall in product prices; the cost of a Maruti Swift, for instance, fell from R6.4 lakh to R5.6 lakh or by around 12%. That apart, the rural economy at the time was in far more robust shape than it is today with farm incomes rising sharply over FY05-13 driven by the MNREGA and big hikes in MSPs; the hike in MSPs for both seasons of FY09 was particularly steep given the elections were round the corner. As such, rural India was a lot more prosperous than now with real rural wages barely growing.

Moreover, consumer confidence was reasonably high as private sector investment, which rose steadily after 2004 and peaked in 2008 at 14% of GDP, had created a lot of jobs. Today, private sector investments are at 15-year lows and corporate cash flows are crimped with most companies highly leveraged. Given the far more difficult environment today, it would be unwise to expect an impact of similar magnitude on consumption demand from pay hikes following the 7th Pay Commission’s recommendations. To be sure, the impact would also depend on the quantum of the hike — the last time around, there was a total increase of 120% between FY06 and FY11, translating into a compounded annual increase of 17%, including R44,000 crore of arrears. Even if the pay hikes are as generous, since there will be no great delay in implementation, there will be no major piling up of arrears. Given that the overall environment will not be as conducive as it was at the time of the 6th Pay Commission, it is unlikely the 7th Pay Commission will pull consumer sentiment up enough to give the economy the boost it needs.

Source: PAlegacy

Allotment of berths under physically handicapped quota – Railway Board Order

Allotment of berths under physically handicapped quota – Railway Board Order

New Delhi, dated 16.11.2015
Chief Commercial Managers,
All Zonal Railways
General Manager,
PRS/CRIS, Chanakyapuri,
New Delhi.

(Commercial Circular No. 67 of 2015)

Sub: Allotment of berths under physically handicapped quota.

As per extant instructions, handicapped quota of 2 berths in sleeper class (one lower and one. middle) is earmarked for physically handicapped persons travelling on concession.

1. There are two types of handicapped persons who can book berth under this quota; one for whom it is compulsory to travel along With escort and the second for whom it is optional. Recently instances were brought to the notice of this office where the handicapped persons for whom it is optional to. take an escort were not allowed to book single berth against this quota by some Railways since the second berth will go vacant as middle berth cannot be allotted to physically handicapped persons. This issue was also raised in Court of Chief Commissioner for Persons with Disabilities.

2. The matter has been accordingly examined and it has been decided. as under:-
(i) There will be two types of handicapped quota of two berths each (one lower and one middle) in the same cabin; one for physically handicapped persons who can utilize concession only when accompanied by an escort and the second for those handicapped persons for whom it is optional to take an escort with them.

(ii) As for the former category it is compulsory to be accompanied by an escort, these berths can be booked by such category of handicapped persons booking tickets on concession on first come first serve basis.

(iii) For the later, where. it is optional to be accompanied by an escort, if the first handicapped person intends to book berth along with escort, both the berths will be booked. However if the first handicapped person books without escort, the second berth will not be booked under handicapped quota and will be released to RAC/waitlisted passengers at the time of preparation of reservation charts.

(iv) Further, at the time of preparation of reservation charts, the unutilized lower berths under this quota can be released to physically handicapped passenger(of either category who were kept in general waiting list due to-exhaustion of their quota), single senior citizen travelling alone on priority and thereafter to waitlisted passengers as per priority. In case a single berth. i.e. middle berth is left vacant in this quota of second category it will be released to RAC/waitlisted passengers.

(v) It has also been decided that whenever a physically handicapped person books ticket on concession and if no berth is available in handicapped quota, the system will automatically try to allot he lower berth to him/her and middle berth to escort subject to availability of same at the time of booking

(vi) CRIS will make necessary modifications in the software at the earliest but not later than 22.12.2015 under intimation to all Zonal Railways as well as to this office.
3. Necessary instructions may be issued to all concerned. After provision of this facility by CRIS, wide publicity to above changes may be made for information of general public.
(Sanjay Manocha)
Dy. Director Traffic Commercial (G)-II
Railway Board
Authority : http://www.indianrailways.gov.in/

7th Central Pay Commission likely to submit its final report on November 20

7th Central Pay Commission likely to submit its final report on November 20

NEW DELHI: The 7th Central Pay Commission is likely to submit its final report to finance ministry on November 20 which is due for implementation from January 1, 2016.

More than 48 lakh serving central government employees and 54 lakh pensioners will be impacted by the 7th CPC which is likely to recommend an average hike of 15%, said a source.

The 900-page report is believed to have made suggestions on parity of 36 organized Group A services with the IAS which has so far largely dominated in superior positions in the central government.

The pay panel was constituted in February 2014 and was asked to submit its report within 18 months. However, in August the government gave the panel four months extension to submit its report by December.

Its recommendation will guide how the salary and various allowances of central staff will be revised besides improving their service condition. The report would also impact all the public sector employees and central autonomous bodies which generally make corrections as per the hikes given to the central staff.

Even before the report was finalized there was intense lobbying seen where all the 36 organised Group A services petitioned the commission seeking parity with the IAS and determination of central postings based on merit.

The IAS officers too had sent their individual dissention notes to department of personnel and training and the cabinet secretariat besides the pay panel demanding that their edge and superiority be maintained.

One of the demands of the Group A services is to change the composition of the Civil Services Board which is responsible for central staffing. As of now this is dominated by IAS officers and has no representation from any other service. The pay panel may recommend changes that would ensure level playing field for all officers of Group A services.

Source: TOI

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