Consumer Price index Numbers for Industrial Workers (CPI-IW) August 2013
According to a press release issued by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for August, 2013 rose by 2 points and pegged at 237 (two hundred and thirty seven). On 1-month percentage change, it increased by 0.85 per cent between July and August compared with 0.94 per cent between the same two months a year ago.
The largest upward pressure to the change in current index came from Food group contributing 1.58 percentage points to the total change. At item level, Rice, Wheat, Wheat Atta,Goat Meat, Dairy Milk, Milk (Cow & Buffalo),Onions, Chillies Green, Tea (Readymade), Firewood, Doctors Fee, Private Tution Fee. Secendory School Books, Petrol, Tailoring Charges are responsible for the rise in index. However, this was compensated to some extent by Groundnut Oil, Fish, Fresh Vegetables and Fruit items, putting downward pressure on the index.
The year-on-year inflation measured by monthly CPI-IW stood at 10.75 per cent for August, 2013 as compared to 10.85 per cent for the previous month and 10.31 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 13.91 per cent against 14.10 per cent of the previous month and 12.20 per cent during the corresponding month of the previous year.
At centre level, Chindwara recorded the highest increase of 8 points each followed by Jalpaiguri and Siliguri (7 points), Durgapur (10 points) and Ranchi, Hatia, Nagpur, Kolkata, Asansol and Tiruchirapally (6 points each). Among others, 5 points rise was registered in 8 centres, 4 points in 6 centres, 3 points in 12 centres, 2 points in 13 centres and 1 point in 19 centres. On the contrary, Goa reported a decline of 5 points followed by Ernakulam, Quilon and Surat (2 points each) and 3 other centres by 1 point each. Rest of the 6 centres’ indices remained stationary.
The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Tiruchirapally centre remained at par with all-India index.
The next index of CPI-IW for the month of September, 2013 will be released on Thursday, 31 October, 2013. The same will also be available on the office website www.labourbureau.gov.in.
The Madhya Pradesh Cabinet on Thursday approved a hike in the Dearness Allowance for all employees of the State government and local bodies.
The DA has been hiked from 80 to 90 per cent of the basic salary. The double digit hike comes less than a week after the Centre announced a 10 per cent hike for its employees. Timed before the model code of conduct for elections comes into force, the DA would be paid retrospectively from July 1.
The government announced the setting up of the Seventh Central Pay Commission (CPC) ahead of elections, heralding the prospect of salary increases for nearly 80 lakh employees and pensioners, although the actual revisions will take about three years or so and could put finances under strain at the time.
“The average time taken by a Pay Commission to submit its recommendations has been about two years. Accordingly, allowing about two years for the 7th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016,” Finance Minister P Chidambaram said in a statement issued by the government on Wednesday.
The Sixth Pay Commission came into effect on January 1, 2006. Prime Minister Manmohan Singh has approved the constitution of the Seventh Pay Commission, Chidambaram said in the statement. The commission’s terms of reference and its members will be announced later. Five state governments go to the polls in November while general elections are expected to be held in May next year.
The government constitutes a pay commission almost every decade to revise the pay scales of its employees, who get an inflation-linked dearness allowance twice a year but no salary revisions as in the private sector.
State governments usually adopt the recommendations after suitable modifications. The commission award tends to impose a significant burden on government finances.
Central government spending on salaries and allowances of just the civilian employees (those who don’t belong to the defence services) rose nearly 40% in 2008-09 after the Sixth Pay Commission award from a year before.
The higher spending came just as the global financial crisis broke, forcing the government to announce measures to prop up growth. The fiscal deficit rose to 6% in 2008-09 and 6.5% in 2009-10 from 2.5% in 2007-08, a slippage the government has still not managed to rein in. Chidambaram last year announced a road map to trim the fiscal deficit to 3% of GDP in 2016-17.
Although higher salaries will mean more disposable income in the hands of government employees, the pay commission award could burden government finances and push back the fiscal recovery.
“No doubt, the Seventh Pay Commission will lead to demand increase in the economy, but it will lead to consumption-led and not investment-led growth,” said Devendra Kumar Pant, chief economist, India Ratings. “If in 2.5 years, the economy does not recover, in terms of growth and fiscal deficit, it will be a big load for the centre and states.”
Trade unions welcomed the constitution of the commission but demanded that they be set up every five years. Congress party general secretary in charge of communication Ajay Maken welcomed the setting up of the pay commission on Twitter. “The government should attract best of talents…Pay commissions help in attracting and also retaining best available talents,” Maken said.
Planning Commission member Arun Maira said at a Ficci seminar in Kolkata: “All government employees will want it while others may not… This is a big election force… It is an interesting situation since it is election time.”
No.1-8/2013-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated: 25th September, 2013.
OFFICE MEMORANDUM
Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2013.
The undersigned is directed to refer to this Ministry’s Office Memorandum No.1(2)/2013-E-II (B) dated 25th April, 2013 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 80% to 90% with effect from 1st July. 2013.
2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No.1(3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.
3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.
4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
5. In so far as the employees working serving in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.
6. The Hindi version of this O.M. is also issued.
(Kishori Raman Sharma)
Under Secretary to the Government of India
Original Order :
http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/da01072013.pdf
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.Â
Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).
No.6/1/2013-Estt(Pay-I)
Government of India
Ministry of Personnel,Public Grievances and Pensions
Department of Personnel and Training
*******
New Delhi, 19th September, 2013.
OFFICE MEMORANDUM
Subject: Participation in sporting events and tournaments of national or inter-national importance.
Consequent upon the implementation of the revised pay structure by the Government with effect from 1st January, 2006 on the basis of recommendation of the Sixth Central Pay Commission and partial modification of this Ministry’s 0.M. No.6/1/97-Pay-1 dated 8th August, 2001 the President is pleased to revise the special increment in the form of personal pay for excellence achieved in National and International events to double the existing amount of the personal pay, subject to a minimum of Rs.210/- per month as indicated in Column 7 of Annexure to this Office Memorandum in the same manner as done in the case of incentive for adopting small family norms.
2. The personal pay will be related to the Grade Pay corresponding to the post against which the employee concerned had initially earned or will earn the personal pay. All other terms and conditions governing the grant of special increment shall remain unchanged.
3. The personal pay is to be granted from the first of the month following the month in which the spotting events are completed and w41 not count for any service matter like pay fixation on promotion, retirement benefit or DA/CCA etc.
4. The revised rate shall be applicable prospectively from 1st September, 2013.
5. In so far as persons serving in the Indian Audit and Accounts Department are concerned these orders issue after consultation with the Comptroller and Auditor General of India.
6.Hindi version will follow.
(Mukesh Chaturvedi)
Deputy Secretary to the Government of India
No.7(2)/E.Coord/2013
Ministry of Finance
Department of Expenditure
New Delhi, the 18th September, 2013
OFFICE MEMORANDUM
Sub: Expenditure Management – Economy Measures and Rationalization of Expenditure.
Ministry of Finance, Department of Expenditure has been issuing austerity instructions from time to time with a view to containing non-developmental expenditure and releasing additional resources for priority schemes. The last set of instructions was issued on 31st May 2012, 1st November 2012 and 14th November 2012. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. In the context of the current fiscal situation, there is a need to continue to rationalize expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect:
2.1 Cut in Non-Plan expenditure:
For the year 2013-2014, every Ministry/Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and the Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed, shall be allowed during the current fiscal year.
2.2 Seminars and Conferences:
(i) Utmost economy shall be observed in organizing conferences/Seminars/workshops. Only such conferences, workshops, seminars, etc. which are absolutely essential, should be held wherein also a 10% cut on budgetary allocations shall be effected.
(ii) Holding of exhibitions/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.
(iii) There will be a ban on holding of meetings and conferences at five star hotels.
2.3 Purchase of vehicles:
Purchase of vehicles is banned until further orders, except against condemned vehicles.
2.4 Domestic and Foreign Travel:
(i) All officers are to travel in economy class only for domestic travel, except officers in the Apex Scale who may travel in executive class. Officers may travel by entitled class for international travel, however officers in Apex scale may travel only by business class. In all cases of air travel, only the lowest fare air tickets of the entitled class are to be purchased / procured. No companion free ticket on domestic/international travel is to be availed of. The existing instructions regarding travel on Leave Travel Concession (LTC) would continue.
(ii) It would be the responsibility of the Secretary of each Ministry/Department to ensure that foreign travel is restricted to most necessary and unavoidable official engagements based on functional necessity, and that extant instructions are strictly followed.
(iii) Where travel is unavoidable, it will be ensured that officers of the appropriate level dealing with the subject are sponsored instead of those at higher levels. The size of the delegation and the duration of visit will be kept to the absolute minimum.
(iv) Proposals for participation in study tours, workshops / conferences / seminars / presentation of papers abroad at Government cost will not be entertained except those that are fully funded by sponsoring agencies.
(v) Travel expenditure (including FTE) should be so regulated as to ensure that each Ministry remains within the allocated budget for the same. Re-appropriation proposals on this account would not be approved.
2.5 Creation of Posts:
(i) There will be a total ban on creation of Plan and Non-Plan posts.
(ii) Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.
3. Observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/State/Local level:
3.1 Release of Grant-in-aid shall be strictly as per provisions contained in GFRs and in Department of Expenditure’s OM No.7(1)/E.Coord/2012, dated 14.11.2012.
3.2 Ministries/Departments shall not transfer funds under any Plan schemes in relaxation of conditions attached to such transfers (such as matching funding).
3.3 The State Governments are required to furnish monthly returns of Plan expenditure – Central, Centrally Sponsored or State Plan — to respective Ministries/Departments along with a report on amounts outstanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.
3.4 The Chief Controller of Accounts must ensure compliance with the above as part of pre-payment scrutiny.
4. Balanced Pace of Expenditure:
4.1 As per extant instructions, not more than one-third (33%) of the Budget Estimates may be spent in the last quarter of the financial year. Besides, the stipulation that during the month of March the expenditure should be limited to 15% of the Budget Estimates is reiterated. It may be emphasized here that the restriction of 33% and 15% expenditure ceiling is to be enforced both scheme-wise as well as for the Demands for Grantas a whole, subject to RE ceilings. Ministries / Departments which arecovered by the Monthly Expenditure Plan (MEP) may ensure that the MEP is followed strictly.
4.2 It is also considered desirable that in the last month of the year payments may be made only for the goods and services actually procured and for reimbursement of expenditure already incurred. Hence, no amount should be released in advance (in the last month) with the exception of the following:
(i) Advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations.
(ii) Any loans or advances to Government servants etc. or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds.
(iii) Any other exceptional case with the approval of the Financial Advisor. However, a list of such cases may be sent by the FA to the Department of Expenditure by 30th April of the following year for information.
4.3 Rush of expenditure on procurement should be avoided during the last quarter of the fiscal year and in particular the last month of the year so as to ensure that all procedures are complied with and there is no infrastructure or wasteful expenditure. FA’s are advised to specially monitor this aspect during their reviews.
5. No fresh financial commitments should be made on items which are not provided for in the budget approved by Parliament.
6. The instructions would also be applicable to autonomous bodies.
7. Compliance
Secretaries of the Ministries/Departments being the Chief Accounting Authorities as per Rule 64 of GFR shall be fully charged with the responsibility of ensuring compliance of the measures out lined above. Financial Advisors shall assist the respective Departments in securing compliance with these measures and also submit an overall report to the Minister-in-Charge and to the Ministry of Finance on a quarterly basis regarding various actions taken on these measures/guidelines.
(R.S.Gujral)
Finance Secretary
Original Order :
http://finmin.nic.in/the_ministry/dept_expenditure/notification/emre/ExpMan_EcoMeasure18092013.pdf
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Personnel and Training)
NOTIFICATION
New Delhi, the 11th September, 2013
G.S.R. 620(E).-In exercise of the powers conferred by the proviso to clause (3) of article 320 of the Constitution, the President hereby makes the following regulations further to amend the Union Public Service Commission (Exemption from Consultation) Regulations, 1958, namely:-
I. (1) These regulations may be called the Union Public Service Commission (Exemption from Consultation) Amendment Regulations, 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Union Public Service Commission (Exemption from Consultation) Regulations, 1958. in the Schedule II, for item 6, the following items shall be substituted, namely:-
“6 A. Exemption from consultation with the Union Public Service Commission for appointment on deputation basis to the posts of Superintendent of Police (Non-IPS), Deputy Superintendent of Police, Assistant Superintendent of Police, Programmer, Assistant Programmer, Administrative Officer, Inspectors, Sub-Inspectors, Section Officer, Senior Private Secretary, Stenographer Grade-C and Assistant in the National Investigation Agency under the Ministry of Home Affairs, for a period upto 31st January, 2014.
6B. Appointment on deputation basis to the posts of Deputy Inspector General (Non-IPS), Cyber Forensic Examiner, Crime. Scene Assistant and Forensic Physiologist in the National Investigation Agency under the Ministry of Home Affairs, for period upto 31st January, 2014″
[No. 39018/11/2009-Estt.(B)J
MAMTA KUNDRA, Jt. Secy
No. AB.14017/44/ 2011-Estt. (RR)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
New Delhi
Dated the 5th September, 2013
OFFICE MEMORANDUM
Subject: Modified Flexible Complementing Scheme – regarding qualifications for Scientists.
Reference is invited to the instructions on Modified Flexible Complementing Scheme for Scientists issued in this Department OM No. AB.14017/37/2008-Estt.(RR) dated 10th September, 2010 based on the recommendations of the 6th CPC. The guidelines prescribe the qualifications for Scientists as under :-
Scientists and Engineers
Persons who possess academic qualification of atleast Master’s Degree in Natural/Agricultural Sciences or Bachelors Degree in Engineering/Technology/Medicine and hold scientific posts defined in the guidelines.
2. References have been received in this Department seeking clarifications as to whether M.Sc. (Electronics) and M.Sc. (Applied Electronics) falls within the applicable qualifications of Modified FCS. The issue has been examined by this Department in consultation with Department of Science and Technology. It has been decided to include degrees of M.Sc (Electronics) and M.Sc. (Applied Electronics) as subjects under Engineering equivalent to Bachelor’s Degree in Engineering.
Consumer Price Index Numbers for Industrial Workers (CPI-IW) July 2013
According to a press release issued today by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for July, 2013 rose by 4 points and pegged at 235(two hundred and thirty five). On 1-month percentage change, it increased by 1.73 per cent between June and July compared with 1.92 per cent between the same two months a year ago.
The largest upward pressure to the change in current index came from Food group contributing 1.99 percentage points to the total change. At item level, Rice, Fish Fresh, Goat Meat, Milk, Onions, Chillies Green, Potato, Tomato & other Vegetables. Electricity Charges, Firewood, Bus Fare, Petrol, etc. are responsible for the rise in index. However, this was compensated to some extent by Groundnut Oil, Primary and secondary School Fees putting downward pressure on the index.
The year-on-year inflation measured by monthly CPI-IW stood at 10.85 per cent for July, 2013 as compared to 11.63 per cent for the previous month and 9.84 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.10 per cent against 14.86 per cent of the previous month and 11.27 per cent during the corresponding month of the previous year.
At centre level, Giridih recorded the highest increase of 16 points each followed by Kodarma (11 points), Durgapur (10 points) and Jharia, Surat, Ghaziabad and Godavarikhani (9 points each). Among others, 8 points rise was registered in 7 centres, 7 points in 6 centres, 6 points in 10 centres, 5 points in 6 centres, 4 points in 7 centres, 3 points in 8 centres, 2 points in 6 centres, and 1 point in five centres. On the contrary, Faridabad reported a decline of 6 points followed by Madurai (5 points), Coonoor (3 points), Tiruchirapally (2 points) and 5 other centres by 1 point each. Rest of the 7 centres’ indices remained stationary.
The indices of 38 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Jabalpur and Ghaziabad centre remained at par with all-India index.
The next index of CPI-IW for the month of August, 2013 will be released on Monday, 30 September, 2013. The same will also be available on the office website www.labourbureau.gov.in.
