REPORTS show that amongst many other steps, the Pay and Service Commission has suggested imposition of toll at all entry points of the capital to collect the additional money needed to pay the increased salary of public servants. This has been frowned upon by experts who have criticised the idea and termed it unrealistic. They said it would increase travel time and push up inflation.
Information available from national dailies say that the committee proposed a 100 percent pay raise on average for government employees of all grades and if the recommendations are fully implemented, the government expenditure on salary and allowances in the next fiscal year would go up by 63.7 percent or Tk 22,953 crore. Of this, Tk 17,464 crore would be needed for government employees, 3,790 crore for pensioners, 1,688 crore for teachers of MPO-listed schools and colleges and Tk 10 crore for employees of autonomous organisations. Experts have said that the toll-collection policy will push up inflation because if the government collects toll from a goods-laden vehicle, prices will go up. Moreover, the toll might be misused by those responsible for its collection. Experts suggested that the government can reduce unnecessary expenditure by cutting subsidy on state-owned enterprises. They also added that if the government can utilise more foreign aid, it will save revenue income and the government can use that money to meet its additional expenditure for increased salary. In FY2014-15, the budgetary allocation for salary and allowance of government employees, pensioners and non-government school and college teachers is Tk 36,017 core. The pay hike will take this allocation to Tk 58,970 in the next fiscal.
Going over the facts, it appears that this is another instance when the government wants to implement something but is incapable of formulating a practical way in which implementation will be feasible and smooth. While it is a healthy gesture on part of the government that they are considering increasing the salaries and possibly benefits for civil servants (which might lead to better performance induced by the financial incentives) but properly implementing it to improve one sector and causing a dent in the economy by fueling inflation is not the best way to go. A better way must be devised by the state after proper research so that the extra necessary funds can be recovered from unnecessary or failing sectors/ projects of the government. It is high time the government shows that they can do more (than just acting on whim) and actually plan ahead by thinking of the people, not just civil servants they have to keep happy to ensure they remain in power.
Information available from national dailies say that the committee proposed a 100 percent pay raise on average for government employees of all grades and if the recommendations are fully implemented, the government expenditure on salary and allowances in the next fiscal year would go up by 63.7 percent or Tk 22,953 crore. Of this, Tk 17,464 crore would be needed for government employees, 3,790 crore for pensioners, 1,688 crore for teachers of MPO-listed schools and colleges and Tk 10 crore for employees of autonomous organisations. Experts have said that the toll-collection policy will push up inflation because if the government collects toll from a goods-laden vehicle, prices will go up. Moreover, the toll might be misused by those responsible for its collection. Experts suggested that the government can reduce unnecessary expenditure by cutting subsidy on state-owned enterprises. They also added that if the government can utilise more foreign aid, it will save revenue income and the government can use that money to meet its additional expenditure for increased salary. In FY2014-15, the budgetary allocation for salary and allowance of government employees, pensioners and non-government school and college teachers is Tk 36,017 core. The pay hike will take this allocation to Tk 58,970 in the next fiscal.
Going over the facts, it appears that this is another instance when the government wants to implement something but is incapable of formulating a practical way in which implementation will be feasible and smooth. While it is a healthy gesture on part of the government that they are considering increasing the salaries and possibly benefits for civil servants (which might lead to better performance induced by the financial incentives) but properly implementing it to improve one sector and causing a dent in the economy by fueling inflation is not the best way to go. A better way must be devised by the state after proper research so that the extra necessary funds can be recovered from unnecessary or failing sectors/ projects of the government. It is high time the government shows that they can do more (than just acting on whim) and actually plan ahead by thinking of the people, not just civil servants they have to keep happy to ensure they remain in power.
