Saturday, January 9, 2010

Pay Hike Consequences in IMPHAl

The state cabinet’s decision yesterday to pay its employees per the 6th Pay Commission’s recommendation is commendable but we hope the government has taken care it has the means to do this. The whole state has witnessed what it can mean to not care about this in the wake of the 5th Pay Commission and the then government’s decision to implement it without first closely checking its bank balance is adequate to meet what it promised. Granted even the last government was forced into doing what it did by striking employees who stopped all services, including quite atrociously very essential ones. Those of us already in the news business at the time, and by the call of the profession had to follow events during those troubled times blow by blow, would remember having even to watch the momentous event in the sporting history of Manipur – that of Ngangom Dingko, winning the Asian boxing title – on televisions in homes or offices which possessed generator sets. Fortunate for the media, the generator is an essential accessory of the business. Probably the present government is trying to avoid such a situation, and probably its promise too still does not have the assurance of monitory support from the Centre and it is acting only on a presumption this support would have to come sometime or the other.But if the strike by state employees demanding pay hike at a par with Central employees was bad the last time around, the consequences of conceding to pay outside of means was no less disastrous. It was literally a case of jumping out of the frying pan into the fire. Until the next Finance Commission took care of the rather intimidating budgetary shortfall, the state was literally in hell. Government salaries were held up for as many as six months at a time, pension queues outside banks were a perennial pitiful sights, the state government’s credit balance at the RBI made banner headlines in local newspapers, clearance of bills for government contracts job remained inordinately delayed, living on credit became a norm, the market lost practically all its liquidity for government salaries form the major share of the money circulating in it, and although no real survey was ever done, there probably would have been a number of small subsistent businesses which were unable to absorb the shock and had had to close shops. The scenario was reportedly the same in many other states. Reports in the media at the time, including a cover story by India Today, if we recall correctly, said 15 state governments were either broke or were on the verge of it. These included among others, West Bengal and Maharashtra. The crucial difference however was that the shock on the people because of the government going broke in Maharashtra for instance was not the same as the government going broke in Manipur. This is so because in the former, there is a self sustaining economy outside of the government and this independent economy although obviously hit hard, would not be in any immediate danger of being destroyed. The same could not have been said of Manipur, and cannot still be said.
Source: IMPHAL FREE PRESSPosted: 2010-01-08

1 comment:

  1. Namakar
    congratulations
    www.bsnlnewesbyashokhindocha.blogspot.com
    M-09426201999

    ReplyDelete

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