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UP govt scraps deferred allowances, and more

After initially deciding to defer payment of six categories of allowances to its employees and teachers for a year, the Uttar Pradesh government has scrapped them altogether.

Published on: May 12, 2020 11:54 PM IST
Hindustan Times, Lucknow | By , LUCKNOW
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After initially deciding to defer payment of six categories of allowances to its employees and teachers for a year, the Uttar Pradesh government has scrapped them altogether.

The government hopes to save an additional sum of Rs 1,500 crore per annum by scrapping these allowances. (Repesentative image/REUTERS Photo)
The government hopes to save an additional sum of Rs 1,500 crore per annum by scrapping these allowances. (Repesentative image/REUTERS Photo)

The government also scrapped some other allowances, including the one paid for promotion of e-governance in all the departments of the secretariat.

A decision to scrap these allowances was taken by the state cabinet, by circulation, here on Monday and formal orders, dated May 12, have been sent to all the departments by additional chief secretary, finance, Sanjiv Mittal.

“A review of the allowances stopped, or not existing, at the centre and permissible in state was carried out following decline in state government’s revenue in view of the fight against Covid-19,” said Mittal while issuing four separate orders scrapping the allowances, including one paid for maintenance of provident fund accounts.

The government hopes to save an additional sum of Rs 1,500 crore per annum by scrapping these allowances. It has already decided to freeze the dearnance allowance and dearness relief paid to its employees, teachers and pensioners from January 1, 2020 to June 30, 2021 to save about Rs 10,500 crore in 2020-2021.

Other allowances scrapped include city compensatory allowance (CCA), secretariat allowance, special allowance given to CB-CID, anti-corruption organisation, economic offences wing, vigilance establishment, security and special investigation wing, special allowance paid to junior engineers in all the departments, 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.

“As the state government is committed for parity with central government in payment of salaries and allowances to its employees and teachers, there is no justification to continue with the allowances when they do not exist at the centre.

The state cabinet, therefore, decided to scrap all these allowances instead of deferring them,” said a senior officer.

 
ABOUT THE AUTHOR
Umesh Raghuvanshi

Umesh Raghuvanshi is a journalist with over three decade experience. He covers politics, finance, environment and social issues. He has covered all assembly and parliament elections in Uttar Pradesh since 1984.

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