Influential quarters of the government are lobbying for more financial facilities to public servants in the election year and an adviser to prime minister has written to the finance minister to offer a financial package in the next budget despite a shortage of funds.
The prime minister’s adviser on the public administration affairs, HT Imam, has recommended a package to augment the financial assistance to public servants.
“We have seen the recommendations of the prime minister’s adviser. But the execution of those would definitely entail huge expenses for the government,” said a senior official of the finance division.
He said execution of the new pay scale involves Tk200bn and before that the government has to spend Tk50bn on dearness allowances for the employees.
The budget deficit in the next fiscal year will amount to 5% of the GDP if the government announces the new salary package, the official pointed out.
Finance Minister AMA Muhith said he was still undecided about payment of dearness allowances. “It will be cleared on June 6 when the budget is announced.”
PM’s adviser HT Imam sent a letter to Finance Minister Muhith Thursday, requesting him to enhance the salary of the public servants in the next fiscal year budget.
Imam, narrating the “importance” of the salary enhancement, said it was necessary to provide different incentives, including a financial package, to the public servants to build a “pro-people” administration.
The letter includes a seven-point demand placed by public service officers and staff to the prime minister’s adviser. It includes a demand of adoption of a unique method in which salaries of public servants automatically go up with the pace of inflation or consumer price indices.
If needed, the government can look into the pay structure of neighbouring India, Imam suggested to Muhith in his letter. Another suggestion says the government should provide 100% of the salary an employee receives before he goes into retirement as pension. The gratuity was suggested as 1:400 of the salary.
Imam in his letter recommended a 50% rise in the basic pay of a public servant and that the lowest salary be increased to Tk3000.
As for those who went into retirement, Imam suggested a Tk3000 increase in the salary and 50% rise in the house rent.
The public administration adviser of prime minister suggested two annual increments for the government employees. Those who work in the secretariat will have 20% allowance of the salary, it was suggested.
It also recommended providing loan at a rate of 4% interest to all government employees the way Bangladesh Bank officials and staff are enjoying now.
Former adviser to caretaker government Dr Akbar Ali told the Dhaka Tribune that it was obvious that the political government would give pay scale to the public servants but how the government would manage it in the budget was a one billion dollar question.
