The Madhya Pradesh government is considering a scheme to save money by offering state employees in non-essential departments up to five year’s leave with payment of half salary, an official said. The state hopes it will save it at least ₹6,000 crore annually.
The scheme, popularly known as furlough scheme, has been introduced by some countries such as the United Kingdom and United States, where employees can avail three years’ leave along with up to 70% of their monthly salary within a limit.
During the paid leave, the employees are free to work anywhere or start a business and opt for voluntary retirement after the break.
According to a senior MP finance department official, the scheme has been devised since the state is reeling under a debt of ₹2.53 lakh crore and the revenues have dipped by up to 30% because of Covid-19’s adverse impact on the economy.
“We have sent the proposal for the chief minister’s approval,” a senior finance department official said on condition of anonymity.
State finance minister Jagdish Deoda said the government is thinking of ways to “increase” the revenue and also “cut the expenditure” to deal with the economic impact of Covid-19 and the furlough “scheme is part of this plan”.
{{/usCountry}}State finance minister Jagdish Deoda said the government is thinking of ways to “increase” the revenue and also “cut the expenditure” to deal with the economic impact of Covid-19 and the furlough “scheme is part of this plan”.
{{/usCountry}}According to the scheme, employees in non-essential departments will be allowed 3 to 5 years of leave with payment of half salary and will be free to work elsewhere during the leave or start a business.
“They will not get any increment and extra allowances during this period. But this leave period will not break their service,” the official said.
Employees facing departmental inquiry or under suspension can not avail the scheme. It is also not applicable to essential departments such as home, health, education and revenue, the officer said.
Another official said that as per an internal survey, those earning less than ₹one lakh were excited about the scheme. “Especially those who are above 50 years of age and have a few years left in government jobs,” the second official said.
To overcome the concern that the scheme may affect manpower hampering work, the finance department will allow for outsourcing of work, if and when needed, the first official said.
Such a scheme is not being introduced for the first time. In 2002, then chief minister Digvijaya Singh introduced a similar scheme to reduce government expenditure but it was withdrawn a year later in 2003, when Bharatiya Janata Party (BJP) came to power. The party then said that the scheme was likely to lead to loss of jobs.
Earlier in September 2020, the state government set up a public asset management department for efficient management, rationalisation and monetization of unused government properties. The MP government has auctioned at least 22 properties to generate revenue worth ₹500 crore since then.