A committee constituted by the Finance Department has recommended that a consultancy be entrusted with the task of assessing and auditing the work of government departments.
The consultancy should recommend redeployment of government employees to enhance productivity. It should also take stock of the man hours and effort required to execute specific tasks.
The main recommendations of the panel are as follows:
A committee chaired by the Chief Secretary should make a panel of consultancies/agencies of international repute. The consultancy should be assigned specific work. [The Finance Secretary will be the convener of the Chief Secretary’s committee and it will have as members the Secretaries of Law and Administrative Reforms].
The state had 5.35 lakh government employees, the Finance Department panel said. It should be seen if the employees were functioning effectively and using information technology tools effectively.
The state spends 72.95 per cent of its tax income on salaries. The pension outgo accounted for 20 per cent of its revenue income.
It is incorrect to infer that the fixing of retirement age at 60 from 58 will lead to loss of opportunities. The Committee said only 18,000 to 20,000 were being appointed in place of those who retired.
Re-employing those retired could save the exchequer Rs. 16,000 crore annually.
The retirement age in Kerala and Jharkhand was relatively low. In Kerala, the longevity was high at 74.9 years but the retirement age was among the lowest.
The report pointed out that the neighbouring state of Tamil Nadu had extended the service of all government employees by one more year in view of the COVID situation.
The committee consisted of former Chief Secretary Dr. K.M. Abraham; Finance Secretary R.K. Singh; Planning Board Member Dr. R. Ramkumar; Dr. D. Shyjan of Calicut University; Dr. N. Ramalingam of the Gulati Institute of Finance and Taxation (GIFT); and L. Anithakumari.
4 reports under consideration
At least four reports submitted by expert committees are with the government but a decision may not be forthcoming on implementing the recommendations as the local self-government and assembly elections are imminent.
Apart from the Finance Department committee report, one each had been submitted by Centre for Development Studies (CDS), Planning Board, and GIFT.
Increasing retirement age is a major recommendation in the reports of the Finance Department panel and CDS. The Left Democratic Front (LDF) is of the opinion that this recommendation need not be implemented.
The government may approve the proposal to deduct a certain amount from those drawing above Rs 20,000 per month for COVID relief ‘deposit’ plan. Those getting pension of above Rs 37, 500 can also join the scheme. The plan offers an interest rate 0.25 per cent above the PF rate. The deposit’s lock-in period is till March 2023.
The proposal to levy 50 per cent more tax on liquor also may be shot down.
Liquor home delivery
A proposal for home delivery of liquor on a membership basis will be studied by Bevco. The proposal is to enlist the services of delivery agents for this.
Another proposal is to hike the fair price of land by 20 per cent every year and reduce stamp duty by 0.75 per cent. The fair price was increased by 10 per cent this year and as much could be increased anytime. But this may not be implemented soon.