The Hindu : Krishna's stand on DA freeze surprises few

Online edition of India's National Newspaper
Monday, Oct 21, 2002

Southern States

Southern States - Karnataka-Bangalore

Krishna's stand on DA freeze surprises few

By A.Jayaram

Bangalore Oct. 20. With Karnataka being one of the States undertaking administrative reforms and keeping recruitment to government service under check, it is no surprise that the Chief Minister, S.M.Krishna, opposed the rather drastic proposal for a freeze on the dearness allowance paid to government employees.

Mr. Krishna, who could not attend the meeting of chief ministers on the issue of fiscal position of the States, convened by the Prime Minister, A.B.Vajpayee, in Delhi on Friday but had his views circulated, also favoured redeployment of government personnel and enforcement of strict recruitment control to maintain fiscal discipline.

The Karnataka State Government Employees' Association has been quick to welcome the suggestion stating that it is meaningless to talk of a freeze on DA without capping prices.

Though for varied reasons, the Government has gone to the extent of freezing appointments even to the Karnataka Public Service Commission. It has allowed two vacancies in the six posts of member to remain for a few months now.

However, the other suggestion of Mr. Krishna to delink the State government salaries from those of the Union Government and to fix scales depending upon each State's capacity to pay will not be palatable to the association.

The association has ever been demanding parity in pay scales and allowances between State and Union government employees.

At least in the past 10 years, a change in the mindset of politicians in particular to government services is visible. They no longer demand creation of jobs in the government to tackle the problem of unemployment, especially among the educated youth. There was a time when members spoke in the two Houses of the Legislature demanding filling of the 90,000 vacancies in government services to help the unemployed youth. No doubt the freeze in recruitment has affected sections of society looking mainly to the government for jobs.

The State's Administrative Reforms Commission (ARC), headed by the Congress leader and former Law Minister, Haranahalli Ramaswamy, had noted: "The Government is generally seen as an employer of first resort leaving a legacy of major overstaffing at both lower and higher levels." However, the problem of unemployment among the youth, especially the educated and the skilled, cannot be overlooked. It has been compounded by the decrease in organised sector employment in the State. Yet, universities and many private educational institutions are opening courses in fields with no regard for job opportunities for those passing out of them.

Among the expenditure control measures announced by the Chief Minister, who also holds the Finance portfolio, for the current financial year are to constitute pay commissions for State Government employees once in 10 years as against the practice in the State of constituting one every five years.

Going by the old practice, a new pay commission should be appointed next year. A major reform announced by the Government that is yet to be given effect to is the introduction of a voluntary retirement scheme for its employees.

It might be that it is awaiting the Centre to act on its announcement.

The ARC had recommended a VRS scheme providing for 45 days' salary for each completed year of service and 25 days salary for each year left before superannuation.

The other decision yet to be implemented is to permit government employees to work in non-government sector.

"Lateral entry of professionals from outside the Government will be encouraged. For this, amendments to cadre and recruitment rules will be carried out, if necessary," Mr. Krishna said while presenting the Budget for 2002-03.

Such recruitment is not without precedent from the erstwhile State of Mysore.

In the early years of Independence, the K.C.Reddy Government appointed some Congress leaders and workers to the government and some of them rose to high positions.

It is to the credit of the Government that it has given effect to some of the recommendations of the ARC which had recommended "right sizing measures."

The commission noted in its interim report (January 2001) itself that the 6.27 lakh-strong civil service was "unaffordable" to the State.

It had called for significant rationalisation and redeployment. There was a high degree of overstaffing at all levels.

The decadal growth of the civil service from 1991 was 24.38 per cent and the salary and pension bill rose by 299 per cent. During 2000-2001, the bill accounted for 71.88 per cent of the Government's revenue receipts.

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Krishna's stand on DA freeze surprises few