Assam govt requires additional funds to implement new pay structure

While the new structure will benefit about five lakh state government employees, it will involve an additional annual expenditure of Rs 700 crore, with Chief Minister Prafulla Kumar Mahanta, who also holds the Finance portfolio, not sure of where the additional funds will come from.

The Assam government currently needs Rs 240 crore per month to pay salaries to its employees, which, following the revision, will go up to Rs 300 crore a month.

Mahanta however is hoping that the Centre will grant amoratorium, if not a complete waiver, on the Rs 6100 crore owed by his government, of which Rs 4000 crore is Central debt, the rest payable to financial institutions like LIC and Peerless.

The two-year old Asom Gana Parishad-led government can also hope for no respite from the agitating employees — who had on several occasions brought the state to a standstill demanding pay revision — with the Sadau Asom Karmachari Parishad (SAKP), the apex body of state employees, refusing to accept the revised structure. SAKP general secretary Charan Deka said the government had begun “a new conspiracy” to “deprive the employees” of their legitimate dues. The employees’ objections arise from the fact that while the pay has been hiked, dearness allowance, which will be around Rs 220 crore per annum, will not be released immediately but will be deposited in the GPF along with the arrears on the revised salary.