7th CENTRAL PAY COMMISSION( CPC) THE REAL TRUTH BEHIND THE DEMAND

Need for 7th CPC

By

Com K.K.N. Kutty

Secretary General.Confederation of CGEs and workers.

The background of the demand for setting up the 7th CPC raised by the Central Government employees on the ground that the wage revision was due in January, 2011,it would be pertinent to examine the wages as a ratio to the revenue resources and revenue expenditure of the GOI in the crucial years 1960-61`,1975-=76, 1986-087, 1997-98 and 2006-07 the relevant years in which the 2nd, 3rd,4th 5th and 6th CPC recommendations were given effect to. It is not difficult to discern the declining trend over the years , which is suggestive of the erosion in the real wages of the Public servants in India.

Year	Revenue Budget		Wage Bill	Wage Bill as % of
	Total Revenue receipts	Total Revenue Expenditure.		Revenue Receipts	Revenue expenditure.
1960-61	1,297	1,246	417	31.3	33.5
1975-76	8,075	7,189	1,887	22.0	22.8
1986-87	33,083	40,860	6,100	18.4	14.9
1997-98	1,33,901	1,80,350	27,430	20.5	15.2
2006-07(BudgetEstimate)	4,03,465	4,88,192	41,770	10.4	08.5

We could see the emerging picture of a declining trend in the ratio of wages and salaries both with reference to revenue receipts and revenue expenditure.

Years	Total Rev. Receipts	Total Rev. Expenditure	Wages & Salary Bill Amount Value	Wage Bill as % of Revenue Receipt	Wage Bill as % of Revenue Expenditure
1991-92	66,047	82,308	10,744	16.3	13.1
1992-93	74,128	92,702	13,397	18.1	14.5
1993-94	75,453	108169	14585	19.3	13.5
1994-95	91,083	122112	15721	17.3	12.9
1995-96	110130	139860	18023	16.4	12.9
1996-97	126279	158988	20396	15.6	12.8
1997-98	133901	180350	27430	20.5	15.2
1998-99	149510	217419	31560	21.1	14.5
1999-00	181513	249109	33978	18.7	13.6
2000-01	192624	277858	33986	17.6	12.2
2001-02	201449	301611	31407	15.6	10.4
2002-03	231748	339627	33317	14.4	9.8
2003-04	263878	362140	34554	13.1	9.5
2004-05	306013	384351	38653	12.6	10.1
2005-06RE	348474	440295	40047	11.5	9.1
2006-07RE	403465	488192	41774	10.4	8.5