Budget 2013: Increase in salaries of government employees on the cards
According to sources, one of the proposals for the 2012/2013 budget include a 65 per cent increase in the basic pay of government employees. The proposal includes an increase between five and 15 per cent in their gross salary.
A second proposal being considered includes an increase of 35 per cent to provide ad hoc relief.
Meanwhile, a 100 per cent increase in the daily allowance of officers between grade 16-22 is also being considered.
Earlier, Dr Fehmida Mirza, the speaker of National Assembly, had called for the budget session on June 1.
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shame ob government
shame on government as it failed to provide facilities to government employees
do u people belive that inflation rate incresed only at the rate of 12 percent ??????????
Printing money to pay government workers. This will only increase inflation.
This might actually lead to progress in terms of curbing corruption
The inflation in the country is only for the government servants and not for the private employees.
Government servants, with few exceptions, takes bribe and the government keep on increasing their salaries.
It is only the private servants who doe not take bribe and on the other hand pay their income tax honestly.
This is rediculous with no economic logic. Pay increases were given to compensate for past inflation in all of the previous budgets. Infact in one case the pay of the fauj was DOUBLED.
With inflation running at around 12%, pay should rise by no more tnan that even though this sort of pay indexation causes problems since it entrenches inflation expectations in the economic system, spills over to the private sector so that you get a generalized increase in wages not matched by an equivalent increase in productivity. That is inflationary and self-defeating.
The best way to handle it is to link pay with expected inflation. In other words, no more than 9.5% but I would give full indexation to retirees and especially widows.