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The Hindu
The Hindu
National
N.J. Nair

Govt. mulling options for paying salary

The State government is learnt to be weighing different options for disbursing salary in May to ease the stress on resources.

The alarming dip in the State’s own tax revenue, the alleged refusal of the Centre in providing financial assistance to manage the crisis, and the rather lukewarm response from a large section of employees and teachers to the government’s call for a Salary Challenge are understood to have forced the government to explore tough options to disburse the salary from its available resources.

Basic salary

Finance Department sources told The Hindu that deferring the payment of dearness allowance till the State’s finance returned to the pink of its health is one alternative. The measly resources at its disposal may be used for paying the basic salary alone. This would offer some leeway to meet other recurring commitments too.

Recovering salary

The State government may opt for recovering a month’s salary of the employees in 12 equal instalments so that the employees would not feel the pinch of the deduction. The amount thus recovered would be directly channelled to the Chief Minister’s Distress Relief Fund.

The outgo from the fund is audited by the Comptroller and Auditor General and is open to public scrutiny, sources said.

Disbursal of salary in instalments is yet another solution. Rather than distributing in one tranche, the disbursal may be split into instalments so that the government could ease the strain on resources and it would be spared of the burden of garnering resources for making the payments in first 10 days of the month.

Averting pay cut

Such options are being considered to avert a pay cut as announced by other States. The revenue loss for April on account of lockdown has been pegged at about ₹10,000 crore and it is likely to go up further.

A positive response from all service organisations to the Salary Challenge would help the government do away with all such measures, sources said.

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