When a decade ago the Centre accepted the recommendations of the Fifth Pay Commission, it led to what the World Bank would refer to as “the single largest adverse shock” to this country’s finances. The pay hike for Central government employees created pressure on the states to match the quantum of increment, and many states struggled to manage their budgets for quite some time thereafter. Unsurprisingly, the Centre’s announcement of the Sixth Pay Commission two years ago drew reservations from many states. So, right away, with the commission submitting its report to the government on Monday, the Centre must take the lessons from the earlier experience and work more closely with the states in implementing its recommendations.But as our columnist today argues, the pay commission exercise is an opportunity the government could be in danger of missing. Certainly, there is a valid case for government employees’ salaries to be updated, and an increase of 40 per cent appears to be foretold. But it would remain an incomplete exercise if it were not accompanied by administrative reform. Administrative problems are the reason for the failure to deliver services and benefits to the people. As the first CAG report on the National Rural Employment Guarantee Scheme showed, announcing and financially accounting for a programme are not enough. It needs a responsive administrative machinery to deliver. In fact, the Fifth Pay Commission report had, in addition to emoluments, suggested that government be downsized. That recommendation stayed on paper. Similarly, the Sixth Commission has points on performance-based increments. Anybody familiar with the workings of bureaucracy must know that determining performance is exceedingly difficult. To speak of a system that rewards performance is to presuppose reforms that make the entire chain of command cohesive.A four-million-strong government work force — and that is just the Central component — is difficult to shake up for attuning personnel to administrative targets. The carrot of hiked pay makes the circumstances of doing so somewhat easier. Lost this time, the opportunity may not come for another 10 years.
