Budget 2017-18 : CGE demands relaxation in Income Tax, 7th CPC Allownace & Fitment Formula: Confederation Appeal

Budget 2017-18 : CGE demands relaxation in Income Tax, 7th CPC Allownace & Fitment Formula: Confederation Appeal

Central Government employees had lot of hopes of this budget especially
on increasing the tax slabs and tax rates reduction , also on
allowances and increasing our wages i.e. revision of the fitment
formula . One more important issue of filling up of vacant post in the
Central Government.
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Budget 2017 and Central Government employees demands 
 
Comrades , 
 
The budget for the year 2017-18 was presented by the Shri Arun
Jaitleyji Hon’ble Minister of Finance on 1st Feb 2017 , the
Central Government employees had lot of hopes of this budget especially
on increasing the tax slabs and tax rates reduction , also on
allowances and increasing our wages i.e. revision of the fitment
formula . One more important issue of filling up of vacant post in the
Central Government. 
 
Shri Arun Jaitleyji Hon’ble Minister of Finance had not uttered a
single word about Central Government employees in his budget speech of
nearly two hours, even though the Central Government employees work
with dedication and implement the programmes and policy of the Central
Government either way of revenue collection, transportation, public
service , working for the welfare of the people of the country etc .
This has caused dissatisfaction amongst Central Government employees as
many of the demands of the Central Government employees are not
considered. The tax proposals provided only a small relief to the
Central Government Employees, actually a big relief should have been
provided. The Central Government employees are disappointed of the
outcome of the budget. 
 
Now let us focus main issues of the CG employees and the budget 2017-18
especially this budget is being presented after the demonetization. As
stated earlier the financial position of the Central Government is very
good even after demonetization. The budget 2017-18 has once again
proved that the Central Government resources are very good the revenue
expenditure has been at 21.47 lakh crores. The fiscal deficit will be
3.2 % of GDP. 
 
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Now coming to the revenue growth of the Central Government in last four
years we can observe from the financial year 2013-14 the Revenue
Expenditure which was at Rs

14.88
lakh crores the

Revenue Expenditure the financial year 2017-18 which stands at 21.47
lakh crores . The fiscal deficit has also reduced from 4.8 % to 3.2 %
of GDP in last four years . This shows that the financial status of the
Central Government is very good. The growth rate of the revenue
collection is about 15% annually. In fact the Shri Arun Jaitleyji
Hon’ble Minister of Finance had stated the revenue collection is
increasing to about 17 % annually. We should be proud that your country
economy is in good shape. Indian economy is a stable economy can
accommodate any additional financial expenditure to be made for the
welfare of Central Government employees. 

 
The revenue of the Central Government is increasing at about 15%
annually, from last three years the revenue of the Central Government
has increased by 45% the expenditure towards salary of Central
Government employees including the defence employees has risen only by
14.5 % on wage hike due to 7th CPC and also Dearness
Allowances expenditure. So total rise in pay hike is about 22% , even
if allowances are released in next financial year additional
expenditure is likely at just 3% as 70% of the employees don’t avail
HRA which is the major allowances, . which is very much less than the
45% of the revenue collection of the Central Government. So the Central
Government can afford to increase our wages considerably i.e revision
of fitment formula and minimum wage . The allowances should be made
effectively from 1st Jan 2016. 
 
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Next on the tax slabs the Shri Arun Jaitleyji Hon’ble Minister of
Finance had made announcement of the tax proposals provided only a
small relief to the Central Government Employees by reducing the taxes
for the slab 2.5 lakhs to 5 lakhs from 10% to 5% . This is only a very
small gestures on the part of Shri Arun Jaitleyji Hon’ble Minister of
Finance , actually a big relief should have been provided by way of
abolishing the taxes up to Rs 5 lakhs . The expenditure loss for
reduction of taxes for the slab 2.5 lakhs to 5 lakhs(

1.95 crore show income between Rs 2.5 to Rs 5 lakh)

from 10% to 5% is just at Rs 15,500/- crores only , if the

Hon’ble Minister of Finance had announced the abolishing the taxes up
to Rs 5 lakhs it could have been additional expenditure of Rs 15,000
crores only which at just half percent of the total budget
revenue collections , next

Rs 5 to Rs10 lakhs slab (only 52 lakh show income between Rs 5 to Rs 10
lakhs ) here also there should have been reduction in taxes from 20% to
10% , the limit of Rs 1.5 lakh under Section 80C for investment should
have been increased upto 2.5 lakh

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which would have encouraged savings , all these measures could have
gone a long way benefiting the Central Government employees and the
salaried class employees a lot.

Today hardly 3 % of the country population are paying the income tax,
the rest 97% do not pay income tax .The Central Government Employees
are honestly paying the taxes. A big tax relief is genuinely due for
them. 
 
One more important problem faced by the Central Government Employees is
that the no filling up of the vacant post in the Central Government,
nearly 4 lakhs post are vacant, even in Railway safety post of 1.41
lakh post are vacant and Income tax department post are vacant, more
manpower is required for effectively collection of the taxes and
implementation of the programmes

and policy of the Central Government. This will also provide jobs for
the youth of the country. 

 
We sincerely hope the

Hon’ble Minister of Finance would reconsider his decision and improve
the taxation policy and consider the demands of the CG employees
effectively in true spirit.

Comradely yours
(P.S.Prasad)
General Secretary

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