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| Retirement age enhancement move: a financial manipulation ....? | | In financial crisis, Govt 'saved' itself from expenditure of Rs 900 cr | | Early Times Report
JAMMU, June 6: Even as the debate on just announced decisions by Omar Abdullah led coalition Government is questioning the timing for enhancement of retirement age of employees, the two allies NC and Congress have actually managed to play the 'stroke' much to Government's benefit on more than just one ostensible front of appeasing a large section of voters. Facing acute financial crisis, the Government has saved itself from a heavy burden of huge expenditure that it was to make on giving retirement benefits, around Rs 900 cr to the employees reaching superannuation in two years.
Sources within the Civil Secretariat said apart from manipulating the timing of decision ahead of Assembly election apparently with eye on electoral gains, the coalition partners have pushed the things much to their relief as the Government had no money to pay even to employees retiring in current year. By deferring the retirement of large number of employees for two years by way of enhancing the age, the Government has been able to save around Rs 900 cr, even though it did not have the money in its kitty at present to disburse among the retiring lot. Sources said this calculation was already worked out by the Finance department which is taking care of financial matters, particularly huge expenditures and had projected before the Government. But the latter did not come out with the decision earlier as it feared a backlash from unemployed youth, far more in number than the employees working in various departments, sources added.
However, after facing debacle in the LS polls, the Government had no option to fast track certain decisions which had been drawing flak for delay despite commitment, which is why both the allies deemed proper to unroll it now. Sources said the Finance Department had worked out that apart from a heavy amount of pension and retirement benefits on leave salary, it was faced with a liability of crores of rupees cumulatively which it conveniently deferred for two years . Sources also said after it gets plan outlay approved from the centre, the Government would fast track things on pending new administrative units and utilize this amount of Rs 900 cr on that front in order to project and list that in one of the achievements in its report card ahead of Assembly polls. Sources said in order to make these units functional, the Government needs atleast Rs 1800 cr which as of now is not in its kitty. However, having played the move in a calculated manner the Government will spend this amount as 50% of the whole amount in a staggered manner, much to show it as fulfilling the commitment. However, the expenditures are dependent on the size of plan outlay the Government receives from the centre on which uncertainty is still hovering, sources added. As for backlash from the youth, while confusion still prevails among them, the Government ahead of polls is contemplating to announce something big which can make this section happy, no matter whether it would be able to fulfil that in the long run or not. |
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