Economics & Business

15 % raise in salaries for grade 1 to 15 govt employees in budget

ISLAMABAD: Federal Minister for Finance, Dr. Abdul Hafeez Shaikh on Friday unveiled the Federal Budget for the Fiscal Year 2011-12 with an outlay of Rs. 2,767 billion showing an increase of 14.2 per cent against last year. It offers a raft of incentives to the government employees including pensioners and gives top priority to increasing economic growth for generating more job opportunities.

Presenting the National Budget for 2011-12 in the National Assembly, the Minister expressed the government’s resolve to

> bring down fiscal deficit to 4 per cent,
> bringing inflation down to single digit,
> enhancing resources to meet the development
> requirements for the socio-economic development of the country.

He said that the government in the outgoing budget approved 50 per cent adhoc relief to its employees besides ensuring their medical allowances and pension.

He said that despite the difficult economic situation, the government is fully aware of the problems of the government employees. In this regard the government in the national budget 2011-12 has also taken a number of measures and proposed a 15 per cent increase in pension of those government employees, who had retired on July 1, 2002 and onwards while for those pensioners who had retired on June 30, 2002 or before would be given 20 per cent raise in the pension with effect from July 1, 2011.

He said that it has been proposed that the government employees from Grade 1 to 15 will be given 15 per cent raise in their conveyance allowance in the budget, whereas the pay of defence paid employees would be increased by 17 percent. He said that all civil and armed forces employees irrespective of their station of duty would get the allowance according to its rate. The government, he said in the budget has proposed to increase different allowances of the government from grade 1-15.

The Finance Minister said that in the Budget 2011-12 it is proposed that adhoc relief allowance given to the government employees upto July 2009 will be merged in Basic Pay Scales of 2008 and new pay scales are being proposed in the budget.
He said that for the employees of grade 20 to Grade 22 the government in the budget has proposed to compulsory monetization of their transport facility.

The Finance Minister said that for the reduction of government expenditures, it is necessary to review and know which public sector expenditures were vital for the welfare of the people. In this regard, he said that a committee is being set up which will overview all the expenditures and submit its recommendations in this regard.

He said that at public sector departments there are distortions in the salaries and to remove this problem all the system in this regard is being reformed and another commission is being set up in this regard.


About the author

Saleem Shaikh

The writer is a development journalist. He writes on water, sanitation, environment, climate change, agriculture, women development, human rights, education, health, development budgets and economy.

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