The State government’s announcement of the constitution of a second pay revision commission (PRC) with retired bureaucrat N. Shiva Shankar is likely to impose huge burden on the exchequer.
The government simultaneously announced interim relief of 5% to all categories of employees with effect from October payable in November. The interim relief itself is likely to entail an additional burden of around ₹2,000 crore on the exchequer, according to Finance department senior officials.
The government has no doubt put in safeguards in the announcement of the new PRC claiming that the commission should consider current pay scales of the State Government employees vis-à-vis pay scales of employees of other State governments and the Central government while making its recommendations. It has been mandated to look into aspects like State revenue growth, commitments for ongoing and future investments, development programmes, welfare schemes and others while submitting its report within six months.
