Bengaluru: The state government of Karnataka is facing a significant financial crisis, making it nearly impossible to revise the salaries of government employees, according to finance department officials who presented the situation to cabinet members on Thursday.
During the meeting, officials provided detailed statistics and a PowerPoint presentation highlighting the financial strain. They pointed out that the expected revenue from GST and other tax collections has fallen short, while a substantial portion of funds is being allocated to various ‘guarantee’ schemes. Consequently, the officials argued that revising salaries at this juncture is not feasible.
Additionally, the demand to transition employees from the new pension scheme back to the old pension scheme was addressed. Officials explained that meeting these demands would severely impact the state’s budget, making it difficult to allocate funds for other essential services. “Given the financial constraints, immediate salary revisions are not possible, although they may be considered in the future,” stated the head of the finance department.
The State Government Employees Association has been exerting pressure on the government for salary revisions and has warned of potential protests if their demands are not met. In response to this pressure, finance department officials were called upon to elucidate the implications of salary revisions to the cabinet.
No cabinet minister pushed for immediate salary revisions, instead suggesting that Chief Minister Siddaramaiah should make an informed decision on the matter. The Chief Minister promised to take appropriate action in the coming days.
This issue stems from the recommendations made by the Seventh Pay Commission, which had proposed a 27.50% fitment along with the merger of a 31% dearness allowance into the basic pay.
The recommendations, submitted by a commission led by retired Chief Secretary K. Sudhakar Rao, could not be implemented due to the Lok Sabha Elections Code of Conduct, which commenced immediately after the recommendations were made on March 16. Despite the end of the code of conduct, no steps have been taken to implement these recommendations, causing frustration among employees.
Further demands include canceling the new pension scheme and reinstating the old pension scheme as promised in the Congress election manifesto. Employees also seek the immediate implementation of the Arogya Sanjeevini Yojana for cashless treatment, transfer of officers and employees through counseling, and filling of 2.58 lakh vacant posts across various departments.
The employees had previously initiated a strike on March 1, 2023, against the Basavaraja Bommai government due to the lack of budget allocation for wage revision, despite the formation of the 7th Pay Commission. The government had announced an interim relief of 17%, which led to the strike being called off within a day.
However, state government employees have now decided to embark on an indefinite strike starting from July 29, condemning the state government’s delay in implementing the Pay Commission’s recommendations. Despite it being four months since the commission’s report, no action has been taken, prompting employees from all groups and departments to prepare for a struggle.
The final decision regarding the strike will be announced at the state function of the State Government Employees Association in Chikkamagalur on July 7, as stated by Union President C.S. Shadakshari.
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