The Uttar Pradesh government has put on hold for one year as many as six allowances payable to different categories of officers and employees in the current financial year, an official said. It also decided to follow the Centre’s decision to freeze the dearness allowance (DA) up to June 30, 2021.
These steps were prompted by a decline in the state government’s revenue following the Covid-19 lockdown and the need for funds to fight the pandemic. The measures will lead to a saving of about Rs 12,000 crore till June-end next year, officials said.
The six categories of allowances that have been deferred from April 1, 2020 to March 31, 2021 include city compensatory allowance, secretariat allowance, special allowance given to CB-CID, anti-corruption organisation, economic offences wing, vigilance establishment, security and special investigation wing, the special allowance paid to junior engineers, research allowance, orderly allowance and design allowance paid in the public works department, along with investigation and planning and orderly allowance paid to officers and employees working with the irrigation department. None of these allowances are paid to central government employees.
“A sum of about Rs 1500 crore will be saved in 2020-2021 by the decision to defer payment of six categories of allowances. A sum of about Rs 7500 crore is likely to be saved in 2020-2021 on payment of DA (if calculated on the basis of 4% increase). If the same rate of DA increase is calculated for the remaining months of 2021-2022 (up to June 30, 2021), the total saving is likely to cross the Rs 12,000 crore mark following the decision to freeze DA,” said a senior officer.
{{/usCountry}}“A sum of about Rs 1500 crore will be saved in 2020-2021 by the decision to defer payment of six categories of allowances. A sum of about Rs 7500 crore is likely to be saved in 2020-2021 on payment of DA (if calculated on the basis of 4% increase). If the same rate of DA increase is calculated for the remaining months of 2021-2022 (up to June 30, 2021), the total saving is likely to cross the Rs 12,000 crore mark following the decision to freeze DA,” said a senior officer.
{{/usCountry}}In an order dated April 24, 2020, additional chief secretary, finance, Sanjiv Mittal, said: “The Uttar Pradesh government’s revenue has come down following the Covid-19 lockdown. At the same time in view of the decision to make funds available to carry out works to check spread of the Covid-19 pandemic, I have been directed to say the governor is pleased to defer the following allowances approved by any previous government order for employees of the state government, teaching and non-teaching employees of the basic education board and aided educational institutions and those working with autonomous bodies.”
In another order with regard to payment of DA to state government employees and dearness relief to pensioners, Mittal said no additional instalment of DA and dearness relief will be paid from January 1, 2020, July 1, 2020 and January 1, 2021. No arrear of DA or dearness relief will be paid from January 1, 2020 to June 30, 2021, he said, referring to the declining revenue of the state government following lockdown due to Covid-19.
Meanwhile, UP State Employees’ Joint Council has opposed the state government’s move. Employees’ council chairman JN Tiwari said the decision would affect about 20 lakh state government employees.
He urged the chief minister to cut a day’s salary every month for UP Covid Care Fund, instead of deferring the payment of allowances.