Coronavirus outbreak: Odisha government will defer salary of CM, ministers, MLA and babus

BHUBANESWAR: As the negative impact of the forced closure to contain Covid-19 is shaping up in the state economy, the Naveen Patnaik The government announced on Tuesday the postponement of the wages of CM, ministers, net and officials like IAS, IPS and IFS.

There will be a 70% postponement in the gross salary of the prime minister, ministers, MLA, presidents of all corporations and elected representatives of all local agencies, said a statement issued by the prime minister's office.

Similarly, there will be a 50 percent postponement in the gross salary of all Indian service officers. The order will take effect with immediate effect, which means that officials will receive less salary for the month of March from April 1 and will continue for an indefinite period.

The move has been taken as part of government austerity measures in view of the economic impact caused due to the ongoing 21-day blockade and to cover the unforeseen expenses incurred (Rs 225 crore so far) to control Covid-19 . The decision will help the state government save around Rs 6 to Rs 7 crore per month.

After Telangana and Maharashtra, Odisha is the third state in the country that has made that decision as part of the austerity measures.

The financial implications of the decision may be small, as it will be applicable to a few people (around 550), the measure shows the seriousness of the state government in fighting the Covid-19 pandemic and in managing the economic impacts negatives of the closure, said a senior government official who requested anonymity.

When asked if the salary was reduced or deferred, the official said: We use the word deferment instead of salary reduction, as the state government may consider giving the percentage deducted from salary to all interested parties at a later stage. if your liquidity position is The state improved. If we use the word pay cut, it will directly mean that officials will never receive the deducted amount.

While the Prime Minister, Ministers, and MLAs get a monthly salary and allowance of around Rs 1 lakh, the average salary for all Indian officers will be around Rs 1.3 lakh per month. In addition to 147 MLAs, there are around 200 IAS officers (from sub-collector level to chief secretary), while the number of IPS and IFS officers would be around 100 each.

Most MLAs have announced that they will donate their three-month salary to the Prime Minister's aid fund to support the state government in the fight against Covid-19.

Deferring the salary of the president of various local corporations and agencies would have no impact on the state treasury, as they do not draw the salary from their own fund instead of the treasury. In addition, they receive remuneration that is much lower, said an official source.

The decision to defer your salary will also help local corporations and bodies (civic bodies/members of the panchayati raj institution) to use the amount in the fight against Covid-19.

Officials from the state finance department indicate that the state government may announce more austerity measures in the coming months to reduce unnecessary spending.