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NEW DELHI :
Amid reports that the central government may impose wage cuts on some categories of central government employees to ease pressure on government spending during the shutdown, the finance ministry clarified today that such a move is not being planned.
“There is no proposal under government consideration for any cut in the existing salary of any category of central government employees. The reports in any section of the media are false and have no basis,” the finance ministry said on Twitter.
Last month, the government had frozen the Loan Allowance (DA) for 50 lakh of central government employees and the Charity Relief (DR) for 61 lakh pensioners until June 2021 due to the COVID-19 crisis. However, central government employees and retirees will continue to receive DA and DR, respectively, at the current rate of 17% until June 30, 2021.
In addition to the cost of medical care, the government also faces the added burden of giving a boost or stimulus to sectors and industries affected by a national blockade. The blockade, which started on March 25, was extended last week until May 3.
At the end of last month, the government announced a ₹1.7 lakh crore economy package, which includes free food grains and cooking gas for the poor and cash for poor women and the elderly. A second package, targeting industries, is said to be in preparation, and is likely to be announced shortly.
State governments are also under pressure in a similar way. In Kerala, the government wants to defer the 6-day salary of all state government employees for a period of 6 months to ease the financial burden.
The Delhi government has suspended the DA hike for around 2.2 lakh of employees and pensioners until July 2021.
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