Tamil Nadu government strapped for money: Dy CM O Panneerselvam

Chennai: The Tamil Nadu government on Tuesday indicated that it is financially hamstrung in meeting additional commitments as a major chunk of its tax revenue, accounting to 70 per cent is utilised in providing salaries to 12 lakh government employees and teachers besides pension to 7.42 lakh retired staff.

While appealing to the members to call off the strike of the Joint Action Committee of Tamil Nadu Teachers’ Organisations — Government Employees’ Organisations (JACTTO-GEO), who began an indefinite fast from Monday, Deputy Chief Minister O. Panneerselvam assured that the government would act after receiving reports from the M.A. Siddique and S. Audiseshiah committees.

“There is no doubt that it is the government employees who are the driving force of the administration of the government that serves the people with dedication.

This is the reason why the Amma (late CM J. Jayalalithaa) government is granting benefits to its employees besides redressing their grievances from time to time,” Mr Panneerselvam said while responding to the special call attention motion moved by the opposition DMK in the Assembly.

Even during economic slowdown the government had hiked the dearness allowance for its employees besides extending the maternity leave to its women employees to nine months from six. The housing loan ceiling too was increased and ex-gratia enhanced to Rs 20 lakh from Rs 10 lakh. Due to manifold revision in minimum and maximum wages in line with the 7th Pay Commission, the government incurs Rs 14,719 crore additional expenditure annually.

“During 2017 – 18 the state’s revenue stood at Rs 93,795 crore. Of this, about Rs 45,006 crore was spent on salaries and another Rs 20,397 crore towards pension, thus totalling to Rs 65,403 crore. That is, about 70 per cent of the tax revenues are utilised to pay salaries and pension to employees, while 24 per cent is paid as interest on loans and remaining 6 per cent along with the Centre’s share totally amounting to Rs 41,600 crore is spent on implementing welfare schemes for the people,” Mr Panneerselvam said. 

He said the government has constituted a panel to look into the irregularities, if any, after pay revision and a committee was formed to examine the possibility of reverting to the old pension scheme.

“The government employees are aware of this development. Though all the States have switched to contribution pension scheme, only in Tamil Nadu a committee has been formed to weigh the pros and cons of this new pension scheme,” he added.

He also urged the agitating members to call off their protest and extend support to the S. Audisheshiya committee (on staff rationalisation) and M.A. Siddique (to examine pleas on pay anomalies, pay revision, etc.). The panel will make specific recommendations in its report to the government by July 31 and based on its report, the government would take action, he assured.

DMK and its allies who raised the issue on Tuesday staged a walk out from the Assembly condemning the government for not holding talks with the JACTTO-GEO members.

Raising the issue during Zero Hour, Leader of the Opposition and DMK working president M. K. Stalin, who met the fasting members before attending the Assembly, demanded that the government hold talks with the striking JACTTO-GEO members and resolve their problems.