Pay panel expects most states to implement its report

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New Delhi, Mar 25 (UNI) The sixth Pay Commission expects most states to implement its report while disclosing that only 20 of the 28 states had implemented recommendations of the 5th pay panel, burdening them with an additional expenditure of Rs 40,000 crore.

The sixth pay panel, headed by Justice B N Srikrishna, has said higher tax revenues in the coming years and strong financials will help most of the state governments meet the enhanced pay bill as recommended by it.

The panel, which submitted its report to the government yesterday, said "the states' revenues in the coming years are likely to be buoyant, especially in the backdrop of uptrend in the tax revenues of the Centre and consequent devolution to states...it is observed that most of the states would be in a position to meet the additional expediture".

The Working Group on states' resources for 11th Plan has also observed an overall improvement in the state finances since 2002-03, the 6th pay panel said, adding aggregate resources for 28 states is estimated to increase from Rs 1,99,384 crore in 2007-08 to Rs 3,65,922 crore in 2011-12 at current prices.

The commission, however, said actual situation in each state may vary depending upon when recommendations of the 5th pay panel were implemented and the extent to which these were implemented.

Having said this, the 6th pay panel disclosed that only 20 of the 28 had implemented the 5th pay commission recommendations, putting a burden of around Rs 40,000 crore. Andhra Pradesh, Assam, Himachal Pradesh, Karnataka, Kerala, Meghalaya, Punjab and West Bengal had not implemented the 5th pay panel's recommendations.

Evenwhile assuming that states will implement the 6th pay commission's recommendations, Justice Srikrishna panel quoted Reserve Bank saying only 19 out of the 28 states are likely to be revenue surplus in 2007-08. Goa and Tamil Nadu could be marginally revenue-deficit in 2007-08, the report said, quoting the Reserve Bank.

The 6th Pay Commission has recommended an across-the-board effective salary hike of about 28 per cent, performance-linked increments, fewer holidays and a new medical insurance scheme.

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