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Need for Seventh Pay Commission – Com K.K.N Kutty, Secretary General Confederation of Central Government Employees and workers explains

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The background of the demand for setting up the 7th CPC raised by the Central Government employees on the ground that the wage revision was due in January, 2011,it would be pertinent to examine the wages as a ratio to the revenue resources and revenue expenditure of the GOI in the crucial years 1960-61`,1975-=76, 1986-087, 1997-98 and 2006-07 the relevant years in which the 2nd, 3rd,4th 5th and 6th CPC recommendations were given effect to. It is not difficult to discern the declining trend over the years , which is suggestive of the erosion in the real wages of the Public servants in India.
Year
Revenue Budget
Wage Bill
Wage Bill as % of
Total Revenue receipts
Total Revenue Expenditure.
Revenue Receipts
Revenue expenditure.
1960-61
1,297
1,246
417
31.3
33.5
1975-76
8,075
7,189
1,887
22.0
22.8
1986-87
33,083
40,860
6,100
18.4
14.9
1997-98
1,33,901
1,80,350
27,430
20.5
15.2
2006-07 (BudgetEstimate)
4,03,465
4,88,192
41,770
10.4
08.5
We could see the emerging picture of a declining trend in the ratio of wages and salaries both with reference to revenue receipts and revenue expenditure.
Years
Total Rev.
Receipts
Total Rev.
Expenditure
Wages &
Salary Bill
Amount
Value
Wage Bill as % of Revenue
Receipt
Wage Bill as % of Revenue
Expenditure
1991-92
66,047
82,308
10,744
16.3
13.1
1992-93
74,128
92,702
13,397
18.1
14.5
1993-94
75,453
108169
14585
19.3
13.5
1994-95
91,083
122112
15721
17.3
12.9
1995-96
110130
139860
18023
16.4
12.9
1996-97
126279
158988
20396
15.6
12.8
1997-98
133901
180350
27430
20.5
15.2
1998-99
149510
217419
31560
21.1
14.5
1999-00
181513
249109
33978
18.7
13.6
2000-01
192624
277858
33986
17.6
12.2
2001-02
201449
301611
31407
15.6
10.4
2002-03
231748
339627
33317
14.4
9.8
2003-04
263878
362140
34554
13.1
9.5
2004-05
306013
384351
38653
12.6
10.1
2005-06RE
348474
440295
40047
11.5
9.1
2006-07RE
403465
488192
41774
10.4
8.5
By
Com K.K.N. Kutty
Secretary General.Confederation of CGEs and workers.
Source: Confederation of Central Government Employees and Workers, Karnataka State

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