Dinesh Kamath's Editorial 'Do govt. employees deserve raise in their salaries?' that was published in Newsband

Do govt. employees deserve raise in their salaries?

The Cabinet has come up with a decision to raise salaries and pensions for more than one crore government employees and pensioners by implementing the Seventh Pay Commission’s recommendations. Now there will be additional money in the hands of the government staff and retired personnel.  Inevitably, the Centre’s decision will put upward pressure on salaries in State governments as well as the private sector. The higher pay and pensions are also expected to bolster savings, which could help the banking and financial system channel funds to meet investment demand.

In India the most sought after job is the government job because of job security, pay and pension and most importantly corruption money - not for all but most of them. The government is just rewarding many corrupt people in the system by taxing common man in every possible way. This way the rich get richer and poor poorer. That’s the reason why even after 68 years of independence the majority of the population is still poor with meagre income.

Prime Minister Narendra Modi aims to achieve a target of 10 crore tax payers by widening the tax base. Tax evasion and tax avoidance will become a story of the past. Secondly, the government is also expected to target subsidies in a better way through Direct Benefit Transfer Scheme. With these outcomes and measures, the Finance Minister may manage to contain the budget deficit.

To create demand in market the government has decided to give good salary for non-productive work. From where does the money come? By taxing the industry/persons. That will only make things worse. Late Shri N A Palkhiwala had said that salary of the Government employees should be lower than manufacturing sector because Government employee is just passing the policies of the Government to the public which does not require heavy salary.

In USA people are not willing to go for government jobs. They want to do business. Whereas in India a person employed in government can easily get a bride rather than person working in private company. We should change this. Actually working in government should be like a military job and should be given to those who are willing for public service. Rules should be changed. Those working in government should work from early morning and also on Sundays (they can take leave on week days) so that people belonging to other services (rest 99%) can get their work done during their free time.

The Pay hike will increase the Inflation and what about those who are all employed in the Private and Unorganized sector? Modi Government has conveniently forgotten them. But they will be needed during 2019 Lok Sabha election although it is far away – the ruling government should not forget that.