Comrades ,
The budget for the year 2017-18 was presented by the Shri Arun Jaitleyji Hon’ble Minister of Finance on 1st Feb 2017 , the Central Government
employees had lot of hopes of this budget especially on increasing the tax slabs and tax
rates reduction , also on allowances and increasing our wages i.e. revision of
the fitment formula . One more important issue of filling up of vacant post in the
Central Government.
Shri Arun Jaitleyji Hon’ble Minister of Finance had not uttered a single
word about Central Government employees in his budget speech of nearly two
hours, even though the Central Government employees work with dedication and
implement the programmes and policy of the Central Government either way of revenue
collection, transportation, public service , working for the welfare of the people of the country etc . This has
caused dissatisfaction amongst Central Government employees as many of the
demands of the Central Government employees are not considered. The tax proposals provided only a small
relief to the Central
Government Employees, actually a big relief should have been provided. The Central Government employees are
disappointed of the outcome of the budget.
Now
let us focus main issues of the CG employees and the budget 2017-17 especially this budget is being presented
after the demonetization. As stated
earlier the financial position of the Central Government is very good even
after demonetization. The budget 2017-18 has once again proved that the Central
Government resources are very good the revenue expenditure has been at 21.47
lakh crores. The fiscal deficit will be 3.2 % of
GDP.
Now coming to the revenue growth of the
Central Government in last four years we can observe from the financial year 2013-14
the Revenue Expenditure which was at is Rs 14.88 lakh crores the Revenue
Expenditure the financial year 2017-18 which stands at 21.47 lakh crores . The fiscal deficit has also reduced
from 4.8 % to 3.2 % of GDP in last four years . This shows that the financial status
of the Central Government is very good. The growth rate of the revenue collection is about 15% annually. In
fact the Shri Arun Jaitleyji Hon’ble Minister of Finance had stated the revenue collection is
increasing to about 17 % annually. We should be proud that your country economy
is in good shape. Indian economy is a stable economy can accommodate any additional
financial expenditure to be made for the welfare of Central Government
employees.
The revenue of the Central Government is
increasing at about 15% annually, from last three years the revenue of the Central
Government has increased by 45% the expenditure towards salary of Central Government
employees including the defence employees has risen only by 14.5 % on wage hike
due to 7th CPC and also Dearness Allowances expenditure. So total
rise in pay hike is about 22% , even if allowances are released in next financial
year additional expenditure is likely at just 3% as 70% of the employees don’t avail
HRA which is the major allowances, . which
is very much less than the 45% of the revenue collection of the Central
Government. So the Central Government can afford to increase our wages considerably i.e revision of fitment formula and minimum wage . The allowances should be made effectively from 1st Jan 2016.
Next on the tax slabs the Shri Arun Jaitleyji Hon’ble Minister of Finance had made announcement of the tax proposals provided only a small relief to
the Central Government Employees
by reducing the taxes for the slab 2.5 lakhs to 5 lakhs from 10% to 5% . This
is only a very small gestures on the part of Shri Arun Jaitleyji Hon’ble Minister of Finance , actually a big relief should have been provided
by way of abolishing the taxes up to Rs 5 lakhs . The expenditure loss for reduction
of taxes for the slab 2.5 lakhs to 5 lakhs(1.95 crore show income between Rs 2.5 to Rs 5 lakh) from 10% to 5% is just at Rs 15,500/- crores
only , if the Hon’ble Minister of Finance had announced the abolishing the taxes up to Rs 5 lakhs it could have
been additional expenditure of Rs 15,000
crores only which at just half percent of the total budget revenue collections , next
Rs 5 to Rs10 lakhs slab (only 52 lakh show income between Rs 5 to
Rs 10 lakhs ) here also there should have been reduction in taxes from 20% to
10% , the limit of Rs 1.5 lakh under Section 80C for investment should have
been increased upto 2.5 lakh which would have encouraged savings , all
these measures could have gone a long way benefiting the Central Government employees
and the salaried class employees a lot.
Today hardly 3 % of the country population are paying the income tax, the
rest 97% do not pay income tax .The Central Government Employees are honestly
paying the taxes. A big tax relief is genuinely due for them.
One more important problem faced by the Central Government Employees is
that the no filling up of the vacant post in the Central Government, nearly 4 lakhs post are vacant, even in Railway safety post of 1.41 lakh post are vacant
and Income tax department post are vacant, more manpower is required for
effectively collection of the taxes and implementation of the programmes and policy of the Central Government. This
will also provide jobs for the youth of the country.
We sincerely hope the Hon’ble Minister of Finance
would reconsider his decision and improve the taxation policy and consider the
demands of the CG employees effectively in true spirit.
Comradely yours
(P.S.Prasad)
General Secretary