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The Orissa government will have to bear additional burden of Rs 2100 crore annually for implementation of higher pay for the state government employees following the recommendations of the sixth pay commission.

 While the additional outgo towards salary is expected to be Rs 1400 crore every year, the state government will bear Rs700 crore more expense to pay enhanced pension to the retired government employees.

The Business standards writes “As a result, the annual salary bill is likely to be about Rs 6900 crore from about Rs 5500 crore ( revised estimate) in 2007-08. Similarly, the pension bill is also likely to increase to Rs 2500 crore from Rs 1800 crore in 2007-08, official sources said. “The implementation of higher pay packages for the government employees following the recommendations of the sixth pay commission will entail an annual additional burden of Rs 2100 crore in the form of salary and pensions”, an official of the state finance department said.

The Orissa government constituted a Fitment Committee (FC) in September this year to study the recommendation of the Sixth Pay Commission (SPC) and the likely impact on the state exchequer if the pay hike is implemented. The Fitment Committee, headed by the Development Commissioner, has already finalised the report but it is yet to submit the report to the government. Sources said, the salary bill which was Rs 3902.68 crore in 2003-04 increased marginally by about Rs 75 crore to Rs 3977.09 crore in 2004-05.This further increased to Rs 4263.69 crore in 2005-06 and Rs 4551.5 crore in 2006-07.”