NEW DELHI, Nov 22:
The Cabinet today approved the setting up of the 15th Finance Commission which will assess the tax resources of the nation and suggest a formula for their devolution among States.
The members of the Commission and its terms of reference will be notified in the due course of time, Finance Minister Arun Jaitley said after the Union Cabinet meeting.
Its recommendations will have to be in place before April 1, 2020, he said. “Normally, it takes 2 years for Finance Commission to give its recommendations.”
As per Article 280 of the Constitution, the Commission is required to make recommendations on the distribution of the net proceeds of taxes between the Centre and the States.
The Commission also suggests the principles which should govern the grants in aid of the revenues of the States out of the Consolidated Fund of India.
This time it will have to take into account the impact of the Goods and Services Tax, which kicked in from July, on the resources of the Central as well State Governments.
On who will head the 15th Finance Commission, Jaitley said: “The members of Finance Commission will be appointed very very soon.”
When asked whether the 15th Commission will also allocate more resources to the States, he said: “I think let us not pre judge the situation. India is a Union of States, the Union also has to survive.”
The 14th Finance Commission was set up on January 2, 2013. Its recommendations cover the period from April 1, 2015 to March 31, 2020.
Meanwhile, the Judges of the Supreme Court and the 24 High Courts will soon get a salary hike with the Union Cabinet approving a proposal, Law Minister Ravi Shankar Prasad said here today.
The Minister said two bills would be introduced in Parliament to effect the pay hike.
According to the proposal cleared today, the Chief Justice of India (CJI) will get Rs 2.80 lakh per month and Judges of the Supreme Court and Chief Justices of the High Court will get Rs 2.50 lakh a month.
Judges of the High Courts will get Rs 2.25 lakh per month, a senior Government functionary added, refusing to go on record.
The increased salary and pension for retired Judges will be effective from January 1, 2016.
A Supreme Court Judge at present gets Rs 1.5 lakh a month in hand after all deductions from salary and allowances. The CJI gets a higher amount than this, while Judges of the High Courts get a lesser amount. Rent-free accommodation is provided to Judges while they are in service.
In 2016, then Chief Justice of India T S Thakur had written to the Government seeking a hike in the salaries of Supreme Court and High Court Judges.
As against the approved strength of 31, the Supreme Court today has 25 Judges. The High Courts have an approved strength of 1,079, but 682 Judges are today handling work in 24 High Courts. The move will also benefit 2,500 retired Judges, Prasad said.
Finance Minister Arun Jaitley said the Government’s endeavour would be to get the two bills passed in the winter session of Parliament.
Once the hike is effected, the salary of Judges will be at par with those of bureaucrats following the implementation of the recommendations of the Seventh Pay Commission.
Meanwhile, the Government today approved a policy framework for Central Public Sector Enterprises (CPSEs) to negotiate the next round of wage revision with their workmen.
The move is likely to impact 9.35 lakh unionised workmen in central public sector enterprises.
The decision to clear the ‘Wage Policy for the 8th Round of Wage negotiations for workmen in central public sector enterprises (CPSEs)’ was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here.
There are nearly 12.34 lakh employees of 320 CPSEs in the country, of whom some 2.99 lakh employees are board level and below-board level executives and non-unionised supervisors.
The remaining 9.35 lakh belong to the unionised workmen category. Wage revision in respect of unionised workmen is decided by trade unions and managements of CPSEs in terms of guidelines issued by the Department of Public Enterprises (DPE) for wage negotiations.
“The wage revision shall be subject to the condition that there shall be no increase in labour cost per physical unit of output. In exceptional cases, where CPSEs are already working at optimum capacity, the administrative ministry/department may consult the Department of Public Enterprises considering industry norms,” an official statement said.
According to the decision taken, the management of CPSEs would be “free” to negotiate wage revision for workmen where the periodicity of wage settlement for 5 years or 10 years “expired generally” on December 31, 2016, keeping in view the affordability and financial sustainability of such wage revision for the CPSEs concerned.
“No budgetary support for any wage increase shall be provided by the Government. The entire financial implication would be borne by the respective CPSEs from the internal sources.
“In those CPSEs in which the Government has approved restructuring or revival plan, the wage revision will be done as per the provisions of the approved restructuring or revival plan only,” the statement said.
Besides, CPSEs must ensure that any increase in wages after negotiations does not result in increase in administered prices of their goods and services.
“The management of the CPSEs concerned has to ensure that negotiated scales of pay do not exceed the existing scales of pay of executives/officers and non-unionised supervisors of respective CPSEs.
“To avoid conflict of pay scales of executives/non- unionised supervisors with that of workmen, CPSEs may consider adoption of graded DA neutralisation and/or graded figment during the wage negotiations,” said the statement.
The validity period of wage settlement will be for a minimum 5 years for those who opted for a 5-year periodicity and a maximum 10 years for those who have gone in for a 10- year periodicity of wage negotiation with effect from January 1, 2017.
CPSEs will implement the negotiated wages after confirming with their Administrative Ministry or department that the wage settlement is in conformity with approved parameters. (PTI)
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