Better pay may help retain talent in public sector

NEW DELHI: Industry associations have said that the adoption of recommendations of the Sixth Pay Commission would help in attracting and retaining the best talent in the government���s administrative machinery. Besides, it would reduce the degree of lethargy in public sector units and make administration more responsive towards the general public. At the same time, industry chambers fear that the move would aggravate fiscal pressures.

Says FICCI secretary general Amit Mitra, ���While public-private partnerships are becoming the model of economic reforms and change presently, attracting the best in governance would be critical for the next phase of reforms.��� He added since fiscal deficit is at an all time high, the absence of pay package provision in the 2008-09 budget proposals would aggravate fiscal pressures.

FICCI has, therefore, suggested that the government should initiate and closely monitor belt-tightening measures to ensure that the situation doesn���t go out of hand and fiscal deficit stays within the budgeted target.



Meanwhile, CII feels the Sixth Pay Commission���s recommendations would take care of the much-needed compensation hike for government employees and give a fillip to demand across sectors. Assocham has also described the move as a healthy sign for the economy but at the same time it has raised concerns over its impact on the forthcoming Budget.

Says Assocham president Sajjan Jindal, ���The government should share the gains of economic growth with its employees to encourage them to become more productive and result-oriented .��� Though tax collections are on the rise and receipt side is showing improvement, the outgo would be considerable and make some impact on the forthcoming budget, Mr Jindal added.