The Finance Ministry official involved with the process of higher allowances on condition of anonymity, told that the Govt is facing the classic dilemma on the subject of issuing of notification of higher allowances under 7th pay commission recommendations.
“The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.
“The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations”, a Finance Ministry official said on condition of anonymity.
Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” the sources added.
The sources further added “the issue of increased financial activities after demonetisation compels the govt to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease. (‘Hopefully’).
As the demonetisation drive today completes 30 days, cash situation continues to stay critical in the country as evident by the unending queues outside banks and a few operational ATMs.
“The government dilemma in relation to issuing higher allowances notification will make to force central government employees to stand in long queues,” the official said. “That is the dilemma, the government is trying to work through.”
“The committee on Allowances has finalized the proposal on the allowances but the government is not interested to do it now,” an official said. “The government will decide to review all situation in respect of cash crunch, the Finance Minister Arun Jaitley is looking at all situations to normalize cash crunch, only then he will receive report on higher allowances.” sources added.
However, the committee on allowances head by Finance Secretary Ashok Lavasa said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”