A complete reference blog for Indian Government Employees

Wednesday, 27 April 2016

7th Pay Commission – Indian Army Chief and his Counterparts in the IAF and the Navy will draw more salary than the top General and Equivalent in the US based on Purchasing Power Parity (PPP)

If the recommendations of the 7th pay commission are implemented, the Indian Army chief’s annual salary will jump to $189,482 (in PPP terms), almost $8,000 more than what a general and equivalent ranks draw in the US. The huge salary hikes will apply equally to civilian officers too.

7th Pay Commission – These conclusions are, however, equally applicable to civilian employees of the government who are similarly placed.

7th Pay Commission recommendation – For the first time, the Indian Army chief and his counterparts in the IAF and the Navy will draw more salary than the top general and equivalent in the US based on purchasing power parity (PPP) terms when the recommendations of the 7th Central Pay Commission are implemented.
A comparison drawn by the Institute for Defence Studies and Analyses (IDSA), a defence ministry think tank, on the pay packets of Army chiefs and equivalent in the US, the UK and India said a general and equivalent in the US was paid $181,500 per annum (in PPP terms). The salary in the UK for similar ranks was $269,868. In India, the three services chiefs, who enjoy pay equivalent to the Cabinet secretary, received $140,520.

If the recommendations of the 7th pay commission are implemented, the Indian Army chief’s annual salary will jump to $189,482 (in PPP terms), almost $8,000 more than what a general and equivalent ranks draw in the US. The huge salary hikes will apply equally to civilian officers too.

India’s annual per capita income is $5,833 (in PPP terms) while it is $54,630 in the US and $39,137 in the UK.

The purchasing power parity conversion factor, used worldwide to compare income levels in different countries, is “the number of units of a country’s currency required to buy the same amounts of goods and services in the domestic market as a dollar would buy in the US”.

The pay panel observed, in light of protests by the three Service chiefs asking for more money and perks, that “defence service officers and JCO/ORs in India, based on 6th CPC pay scales, are placed quite well in terms of pay, even in relation to defence personnel in countries like US and UK, where the GDP per capita in PPP terms for the country as a whole is significantly higher than that of India”.

These conclusions are, however, equally applicable to civilian employees of the government who are similarly placed. The pay panel’s analysis did not take into account the augmentation of pay being recommended by the 7th CPC.

The IDSA, an autonomous institution funded by the government, was in 2015 commissioned by the Pay Commission to study how well the military and the generals were paid.

Source: TOI
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FM: Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector

FM: Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector

The Union Finance Minister, Shri Arun Jaitley said that the Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector especially in case of Public Sector Banks (PSBs). The Finance Minister said that there are two categories of defaulters, viz. those who are unable to pay back due to economic slowdown both in domestic and global market and other reasons outside their control as well as wilful defaulters including loans sanctioned without due diligence by the banks. The Finance Minister said that the Government has taken various measures to deal with both these categories of defaulters. The Finance Minister Shri Jaitley was making his Opening Remarks at the Second Meeting of the Consultative Committee attached to the Ministry of Finance on the subject: “NPAs in Banking Sector” here today.

The Finance Minister Shri Jaitley further said that in order to deal with default due to economic slowdown, the Government has taken various measures to revive the stressed sectors which mainly include steel, textiles, power and roads among others. Shri Jaitley said that the Government has also done recapitalization of banks by providing Rs. 25,000 crore in the last year Union Budget 2015-16 as well as in this year’s budget 2016-17. He said that transparency and professionalism has been brought in appointment process for top management positions in the PSBs including Chairmen and Managing Directors. He said the Government has taken various measures to make the management professional, has given full autonomy to the banks in taking commercial decisions without any interference from the Government.

The Finance Minister Shri Jaitley said that Bankruptcy Law has been cleared by the Joint Parliament Standing Committee and is likely to be discussed in the current Budget Session of the Parliament. The Finance Minister also said that SARFAESI Act and DRT Act have been amended to make the recovery process more efficient and expedient. The Finance minister said that wherever it was observed that number of cases in which action taken by the banks against guarantors for recovery of defaulted loans is insufficient, the Government has advised the banks to take action against guarantors in the event of default by borrowers under relevant Sections of SARFAESI Act, Indian Contract Act and RDDB & FI Act. The Finance Minister said that a direction to this effect has been issued to the banks last month. The Finance Minister also highlighted the various measures taken by the Government for revival of stressed sectors such as steel, road, power and textile sectors among others.

Later the Members of the Consultative Committee gave their suggestions with regard to recovery of loans and bringing NPAs under control. Members suggested that there is need for bringing more transparency in the system and list of all the defaulters whose loans have been written off by the PSBs be made public. They asked for exemplary action against the wilful defaulters so that others do not indulge in similar activities. Some members appreciated the Government’s effort to make the appointment process for the top management positions of banks professional. Some members also suggested that there is need for restructuring of agricultural loans in order to help the farmers. Members also suggested that there should be no employment cut due to any amalgamation or merger of banks. Members asked the Government to ensure level playing field to all Indian entrepreneurs across the board. They suggested that due to wilful default by some prominent business men, others may not be considered and treated in a similar fashion. Some members suggested that a committee be constituted to finalise recovery process in case of loans given to big corporate houses by various PSBs.

The Members of the Consultative Committee who participated in the aforesaid Meeting include Shri Anirudhan Sampath, Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Smt. Poonam Mahajan, Shri PrabhatsinhPratapsinh Chauhan, Shri Ram Charitra Nishad, Shri Sriram Malyadri, Shri Subhash Chandra Baheria, Smt. Supriya Sadanand Sule, Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Dr. K.P. Ramalingam, Shri Rajkumar Dhoot, Shri Ranvijay Singh Judev, Shri Satish Chandra Misra, Kumari Selja and Shri Sukhendu Sekhar Roy (all members of Rajya Sabha).

Along with the Finance Minister, the Minister of State for Finance Shri Jayant Sinha, Shri Ratan P. Watal, Finance Secretary, Shri Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary, Ms. Anjuly Chib Dugal, Secretary, Financial Services, Shri Neeraj Kumar Gupta, Secretary, DIPAM, Dr. Arvind Subramanian, Chief Economic Adviser (CEA), and other senior officers of the Ministry of Finance attended the aforesaid Consultative Committee Meeting.

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Changes in National Pension System (NPS)

Changes in National Pension System (NPS)

The Government has proposed the following in the Finance Bill, 2016 with regard to the National Pension System (NPS):
i. Allowing 40 per cent of the NPS corpus tax exempt on lump sum withdrawal.
ii. Waiving service tax on the NPS corpus utilized for purchase of annuity.
iii. The amount receivable by the nominee in case of death of the subscriber covered under NPS has been made tax exempt.
iv. One-time portability without any tax implication has been allowed to the subscriber for shifting from recognized provident fund to NPS.
v. One-time portability without any tax implication has been allowed to the subscriber for shifting from superannuation fund to NPS.
As per the provisions of the Finance Bill, 2016, 40 per cent of the pension corpus under NPS is proposed to be tax exempt on lump sum withdrawal. Also, the proposal in the Union Budget, 2016-17 for taxation of 60 per cent of provident fund corpus under the Income Tax Act, 1961 has been withdrawn by the Government. Employees’ Provident Fund (EPF) remains an Exempt Scheme.

However, EPF and NPS are different schemes available to separate categories of subscribers and they are not comparable on one-to-one basis.

This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today.

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7th Pay Commission Latest News – Minister’s reply on financial outgo and implementation Date

In the event of 7th Pay Commission implementation in 2016-17, additional burden to exchequer would be Rs 1.02 lakh crore, which is 0.7 per cent of GDP

7th Pay Commission Latest News – Minister’s written reply in Parliament on financial outgo and implementation Date – Minister also confirms recent release of additional DA has no impact on the recommendation of 7th Pay Commission

7th Pay Commission likely Implementation date and Financial Implication:

Likely 7th CPC Implementation Date : 7th Pay Commission recommendations to be implemented after approval of the Cabinet on completion of screening of suggestions by Empowered Committee of secretaries which is on the job presently.

Date of Effect of 7th Pay Commission Recommendations:

Subject to acceptance by the government, 7th Pay Commission Recommendations will take effect from January 1, 2016

7th Pay Commission Financial Implication:

Type of Salary Head Total Financial outgo without 7th CPC implementation (In Crore) Total Financial outgo if 7CPC implemented (In Crore) Financial Burden out of 7CPC implementation (In Crore)
Salary 2.44 lakh 2.83 lakh 39,100
HRA 12,400 29,600 17,200
Pension 1.42 lakh 1.76 lakh 33,700
Other Allowances 24,300 36,400 12,100

Total 1,02,100

Financial Express report on Minister’s reply in Rajya Sabha on 7th Pay Commission Report:

Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore, or 0.7 per cent of GDP, on the exchequer in 2016-17, government said. The implementation of recommendations of the 7th Pay Commission report, however, would be after approval of the Cabinet on completion of screening of suggestions by a high-level panel of secretaries, the Rajya Sabha was informed.

The implementation of the new 7th Pay Commission pay scales is estimated to put an additional burden of Rs 1.02 lakh crore (or 0.7 per cent of GDP at current market prices) on the exchequer in 2016-17. Subject to acceptance by the government, they will take effect from January 1, 2016. In a written reply, Minister of State for Finance Jayant Sinha also said that the announcement of Dearness Allowance has no impact on the recommendations of the Pay Commission.

Giving details of financial implications of the recommendations, Sinha said the burden on pay head would increase by Rs 39,100 crore to about Rs 2.83 lakh crore in the current fiscal. Without the Pay Commission recommendations, the outgo would have been Rs 2.44 lakh crore.

The outgo towards HRA will increase by Rs 17,200 crore to Rs 29,600 crore. The outgo on pension front will be Rs 1.76 lakh crore (increase of Rs 33,700 crore) and on other allowance will be Rs 36,400 crore (up Rs 12,100 crore).

The Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission was set up in January. The recommendations of the 7th Pay Commission report will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.
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Scheme for promotion of Adventure Sports and similar activities amongst Central Government Employees Continuation of Scheme during the year 2016-17 and inclusion of new Institutes

No.125/1/2015-16/CCSCSB
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
******
Lok Nayak Bhawan, New Delhi
Dated 26th April, 2016.
OFFICE MEMORANDUM

Sub: Scheme for promotion of Adventure Sports and similar activities amongst Central Government Employees Continuation of Scheme during the year 2016-17 and inclusion of new Institutes.

The undersigned is directed to refer to the Department of Personnel & Training Office Memorandum of even number dated 4th December, 2015 circulating therewith Scheme for promotion of Adventure Sports and similar activities amongst Central Government Employees and to say that it has been decided to continue the Scheme during the year 2016-17. Further, following Institutes/Organizations have also been included in the list of approved Institutes under the Scheme:

i. Himalayan Mountaineering Institute (HMI), Darjeeling, West Bengal.
ii. Jawahar Institute of Mountaineering (JIM), Pahalgam, J&K.
iii. National Institute of Mountaineering & Allied Sports (NIMAS),
Dirang, Arunachal Pradesh.
iv. Youth Hostels Association of India (YHAI), Chankyapuri, New Delhi.

2. In view of the above, it is requested that the contents of the Scheme (copy enclosed) may please be disseminated amongst the employees who are eligible to avail the benefits of the Scheme and encourage them to participate in the Scheme.
(Abhay Jain)
Under Secretary to the Govt. of India.
Tel:24646961
To
Director/Deputy Secretary(Administration) of all Ministries/Deptt.

No.125/1/2015-16-CCSCSB
Department of Personnel & Training
New Delhi, the 26th April, 2016.

SCHEME FOR PROMOTION OF ADVENTURE SPORTS & SIMILAR ACTIVITIES AMONGST CENTRAL GOVERNMENT EMPLOYEES
1. Background: The Department of Personnel and Training recognizes that welfare of employees is one of the prime tasks of personnel management and sports activities play an important role in improving their efficiency and morale. Participation by Central Government Employees in adventure sports and similar activities will give them a platform where they would learn lessons from nature and use the knowledge acquired for welfare of the society.

2. Vision: To foster spirit of risk-taking, cooperative team work, capacity of readiness, vital response to challenging situations, endurance and environmental awareness.

3. Mission: The Mission of the Scheme for promotion of adventure sports and similar activities is to encourage Central Government Employees working in the Ministries/Department of the Government of India to take part in these activities by giving financial assistance and other incentives. The Central Civil Services Cultural & Sports Board, a Society registered under the Society Registration Act, 1860, which is under the aegis and control of the Department of Personnel & Training will be the nodal agency for the Scheme.

4. Objectives:
(i) The Scheme would tackle the alarming situation of stress and impact of sedentary life on Government servants as highlighted in several studies conducted so far;
(ii) It would provide a creative outlet to Central Government Employees;
(iii) It would create and foster spirit of risk – taking, cooperative team work, capacity of readiness and vital response to challenging situations and of endurance;
(iv) Central Government Employees would be prepared for better Disaster Management; and
(v) Environmental awareness would be inculcated amongst the Central Government Employees.

5. Scope of the Scheme: The scope of the Scheme is limited to Central Government Employees working in the Ministries/Departments of Government of India. It will also be limited to the programme run by Institutes/Organizations approved by the Department of Personnel & Training.

6. Activities to be sponsored and Institutes: The Department of Personnel & Training will sponsor programmes of 5-7 days duration to be organized by the Institutes/Organizations listed at Annex-I.

The programme will have components of environmental awareness, disaster management, team spirit, capacity building, and Swachchh Bharat Campaign. The activities under the programme will be Trekking, Mountaineering, Rock-Climbing, Cycling in a difficult terrain, Skiing, Surfing, Boat Sailing, Snorkeling, Rafting, Para Sailing Ballooning, Para Gliding, Jungle Safari/Trekking, Desert Safari/Trekking, Beach Trekking and Environmental Awareness Camps etc. A Calendar of the programmes admissible under the Scheme will be circulated by the Department of Personnel & Training from time to time.

7. Financial Assistance and other incentives:

7.1 The Department of Personnel & Training will provide financial assistance to the eligible Central Government Employees for the programme of approved activities and conducted by the Institutes
listed in Annex I .

7.2 Financial assistance will be in the form of reimbursement of Travel Expenses, programme fee and Hiring Charges of the equipments as per the terms and conditions specified in paragraph

7.3 and with a maximum ceiling of Rs.20,OOO/- (Rs. Twenty thousand only) per person per camp. The assistance will be limited to one activity in a block period of two year. Financial Assistance of 100% of programme fee would be provided in a calendar year to two officials of each Ministries/Departments who have been awarded by the Ministry/Department for excellence in service and nominated for the programme.

7.3 The following Heads are admissible for financial assistance under the Scheme:
i) To and fro travel expenses as per the entitlements under Leave Travel Concessions Rules with a maximum ceiling of Rs. 4,000/;
ii) Re-imbursement of Programme fee:
(a) 90% for Group ‘ C’ Central Government Employee;
(b) 80% for Group ‘ B’ Central Government Employee; and
(c) 75% for Group’ A’ Central Government Employee.
iii) Actual hiring charges if the necessary equipment are hired from any Government agency with adequate proof subject to maximum of Rs. 2000/-.
7.4 Special Casual Leave will be granted to eligible participants in
accordance with Department of Personnel & Training Office Memorandum No. 6/1/1985-Estt.(Pay-I) dated 16th July, 1985, No. 6/1/85-Estt(Pay-I) dated 7th November, 1988 and No.6/3/2015 – Estt(Pay-I) dated 29th February, 2016.

8. Procedure for availing benefits of the Scheme:
8.1 The Central Government Employee will register himself with the Institute/Organization for the approved programme and make payment for it. He/she will simultaneously also submit his/her application to Central Civil Services Cultural & Sports Board duly
forwarded by the Welfare Officer of their  respective Ministry/Department.
8.2 The Ministry/Department will forward nominations of officials who have been awarded by the Ministry/Department for excellence in service and eligible for Financial Assistance of 100% of programme fee.
8.3 The Welfare Officer of the Ministry/Department in each case will certify that the recommended official is a Central Government employee working in the main Ministry/Department and medically fit for the adventure activities opted by him.
8.4 The financial assistance will be given on successful completion of the programme and submission of participation certificate to the Central Civil Services Cultural and Sports Board.
9. Flexibility to expand the scope: The Department of Personnel & Training will reserve the rights to modify the scheme, addition or deletion of activities, Institutes/Organization, change in pattern of financial assistance and other conditions of the Scheme without any
prior notice.
ANNEX I
LIST OF APPROVED INSTITUTES/ORGANISATIONS FOR SCHEME FOR PROMOTION OF ADVENTURE SPORTS AND SIMILAR ACTIVITIES AMONGST GOVERNMENT EMPLOYEES AS ON 13.04.2016
1. Nehru Institute of Mountaineering, Uttarkashi, Uttarakhand.
(Recognized by Ministry of Defence and Government of Uttarakhand)
http://www.nimindia.net
2. Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports, Manali, Himachal Pradesh. (Government of Himachal Pradesh)
http://www . adventureh i ma laya. org
3. Indian Institute of Skiing & Mountaineering, Department of Tourism, Gulmarg, Jammu & Kashmir. (Ministry of Tourism)
http: //www .iismgulmarg .in
4. National Institute of Water Sports, Vasco da Gama, Goa. (Ministry of Tourism) http://www.niws.nic.in
5. Swami Vivekanand Institute of Mountaineering, Mount Abu, Rajasthan.
(Government of Gujarat) http ://www.gujmount.com
6. Garhwal Mandai Vikas Nigam Ltd, Dehradun, Uttarakhand.
(Govern ment of Utta ra kha nd) http://www.gmvnl.com/newgmvn
7. Himalayan Mountaineering Institute (HMI), Darjeeling, West Bengal. http://www.hmi-darjeeling .com
8. Jawahar Institute of Mountaineering (JIM), Pahalgam, J&K.
http://www.jawaharinstitutepahalgam.com
9. National Institute of Mountaineering & Allied Sports (NIMAS), Dirang, Arunachal Pradesh.
10. Youth Hostels Association of India (YHAI), Chankyapuri, New Delhi.
http://www.yhaindia .org
***
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Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

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