Government school staff may get allowances as per Sixth Pay Panel report

Government school staff may get allowances as per Sixth Pay Panel report The state government of UP is likely to give pay scale to school teacher in accordance with the recommendations of the Sixth Pay Commission. After the pay hike, school teachers would get pay scale equal to central government employees. 

The decision would put extra burden of Rs 1,500 crore on the state exchequer but politically prove beneficial for BSP in the wake of forthcoming general elections.

The State has annual plan of Rs 35,000 crore and its expenditure would increase from existing Rs 28,698 crore to Rs 33,698 crore. Uttar Pradesh has about 8 lakh state employees and 6 lakh teaching and non-teaching staff in addition to around 4 lakh pensioners. 

Pay hike would lead to increase the fiscal deficit of the state to Rs 14,000 crore. 

However, it is a big challenge before the government to cover revenue and expenditure mismatch. The value added tax (VAT) collection has dipped to Rs 8,883 crore against the target of Rs 9,712 crore. The land revenue tax collection has also shown a decline of 10 per cent. However, state has shown an increase of 2.5% in stamp and registration fee. 

Government has to face serious financial crisis if it takes such politically motivated decisions, as per view of an anonymous official. It would also increase state dependence on central taxes. 

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