Lavasa panel suggests changes in allowances to govt employees

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Earlier the 7CPC in its findings had recommended the abolition of 51 allowances and subsuming of 37 others out of 196 allowances.

While recommendations of the CPC on pay and pension were implemented with the approval of the Cabinet, allowances continued to be paid at old rates.

By appointing Development Commissioner R Balakrishnan as the head of the Fitment Committee, Home Secretary Asit Tripathy, Finance Secretary Tuhin Kant Pandey, Forest and Environment Secretary Suresh Mohapatra, Special Secretaries in the department of Finance A K Meena and Aswini Mishra as members, the government had directed it to submit its report within four months.

The examining committee for the recommendations on allowances of the 7th pay commission has submitted its report to FM, Arun Jaitley on Friday, April 28, 2017.

The pay panel had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

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The commission had recommended hiking the HRA in the range of 8-24 per cent.

Looking into the future, if these recommendations on allowances are fully implemented, then as per estimates the cost to each exchequer will be Rs 29,300 cr.

The Report, now being examined in the Department of Expenditure, Ministry of Finance, will be placed before the Empowered Committee of Secretaries (E-CoS) set-up to screen the 7th CPC recommendations and to firm-up the proposal for approval of the Cabinet.

Fitment Committee Chairman R Balakrishnan after a meeting of the Committee held here today sought another 45 days to submit its draft report.

That the Ashok Lavasa-led committee had missed its deadline was revealed by Minister of State for Finance Arjun Ram Meghwal while replying to a question on Seventh Pay Commission in Parliament. Some reports claim that the committee has taken a final view on these 14 existing allowances.