Govt staff not to get leave surrender for 3 months; outstanding DA to be transferred to CMDRF
Thiruvananthapuram: Though the government was suggested that freezing the dearness allowance (DA) of the government employees will help overcome the financial crisis due to COVID-19 outbreak, the move does not seem to be useful in the long run as the pending amount will have to be paid later. Instead, the government now considers to avoid granting the outstanding DA.
Presently, there is 12 percent outstanding DA in three phases. Rs 2700 crore is required to clear this. Instead of granting this outstanding amount to the employees, transferring it to the Chief Minister's Distress Relief Fund (CMDRF) will be better. Also this can be easier than requesting one month's salary from the staff, the employees organisations of the ruling front opined.
Even if all staff willingly donated their one month's salary, only Rs 2300 crore can be obtained. In fact, less than half of the employees are likely to be willing for the move, as observed during the flood havoc. Only Rs 1500 crore could be raised during the salary challenge started then. But Rs 2700 crore can be obtained by transferring outstanding DA to the CMDRF. However, the cabinet has not decided on this yet.
No leave surrender now
It has been decided to grant the leave surrender benefit of government employees and teachers only after three months due to financial crisis. Payment of Rs 2500 crore in this category has been temporarily stopped.
The leave surrender will be provided from July only. The decision is not applicable for those who already passed the leave surrender bills. But the pending bills will be cancelled now and they will get the amount only in July. This is applicable for temporary staff also.
The government is struggling to disburse the salary of April. However, the decision on salary challenge in which one month's salary of the government staff will be donated to the CMDRF is not finalized yet.
Restrictions in treasury removed
Finance Minister Dr Thomas Isaac informed that there will be no restrictions in the treasury to pass the bills of local bodies from Friday onwards. An order was issued removing all restrictions in treasury.
All bills can be passed without ways and means permission. No limit has been decided for the transactions that belong to 29 essential categories. In order to acquire land, bills upto Rs 1 crore can be passed.
No limit has been decided for the kerosene subsidy for fisherfolk, stipend for students, tax compensation, refund, medical reimbursement, withdrawal from CMDRF, Life Mission's expenses and similar expenditures, said the finance minister.