VRS likely to freeze recruitment for 5 yrs

NEW DELHI: The proposed rightsizing programme at the Centre through VRS is likely to result in a freeze on fresh recruitment for five years.
While the government was drawing up plans for VRS on the basis of a report by the K P Geethakrishnan committee on Expenditure Reforms, the Planning Commission has maintained serious reservations on Centre''s downsizing strategy for cutting flab by 10 per cent in five years.
"The process of downsizing is not going to be as painless as is believed presently, and difficult decisions will have to be taken," the commission said in a technical report, which is being examined by the Finance Ministry.
The Geethakrishnan commission assumed an annual retirement rate of 3.0 per cent, which implies that over 39,500 employees would have to retire each year.
Government intends to reduce the staff strength by 10 per cent over the next five years from the present pool of 13,18,000 employees. This means reduction in employment rate of central government jobs to one per cent annually.
However, the plan panel said "any down-sizing strategy based on a presumed annual retirement rate of 3.0 per cent is likely to go terribly wrong."
The commission said that reduction of staff by 10 per cent was feasible considering a retirement rate of 1.8 per cent and a in-service death rate of 0.3 per cent, but some hard decisions have to be taken.
"The down-sizing target can be met provided no fresh recruitment is made for next five years in all categories of Central government employees," it said.
The plan panel also said that the government has to prepare for a situation where there would be serious shortage of people in younger age group for an extended period of time. "In a context where promotions are time bound, this can wreak havoc at the working level," it added.
Moreover, it said the feasibility of downsizing through attrition needs to take into account both feasibility and desirability of reducing the employees belonging to police and para-military forces now numbering 5,30,000.
If the police and para-military forces are left untouched in the proposed VRS, then the annual reduction in work-force for others have to be 3.3 per cent, the plan panel said, adding this might mean extending the freeze in recruitment for seven years.