Assam government to pay full salaries to employees; initiates austerity measures to tackle economic crisis

Assam Finance Minister Himanta Biswa Sarma on Wednesday announced that state government will be paying full salary for the month of May to its employees and will not resort to any pay cut for now. However salary will be credited to the accounts on May 8 instead of the first.

“We are not resorting to any salary cut and will pay full salary to government employees with just one exception that salaries will be credited on 8th of May” the minister said while addressing a press conference at Guwahati NHM office, this afternoon.

Apart from it, Sarma also announced some austerity measures taken by the state government to “rationalise expenditure and optimise available resources” in the wake of the Covid outbreak.

“Like the health crisis created by COVID19, similar crisis is also looming over the economy because of the disease” the minister said while upholding the figures of decreased revenue collection in the month of April 2020. Sarma mentioned where in April 2019, 932.36 crore GST revenue was collected, in 2020 April it was only 193 crore, which is 80% less than previous year.

Thereby with a view to mitigate the present economic crisis, Assam government has initiated a set of austerity measures to tackle the economic crisis, which included-

Ban on executive class travel by all government officials and legislators barring the Chief Justice of Gauhati High Court, Judges of Gauhati High Court, Chief Minister, and the Chief Secretary.

Ban on foreign training course/workshop/seminar outside India by officers, for which expenditure has to be borne by the State Government.

Establishment expenditure for all department has been reduced to 10% from 20 % for the first quarter.

No administrative department will approve any development schemes without approval of the finance department except centrally aided and externally aided schemes.

There will be no allocation of fund for MLA Local Area Development for the first quarter.

There will be 25 % reduction of salary of chairman and vice-chairman of various government PSUs, corporations etc.

Ban on holding of exhibitions/seminars/ conferences/fair and functions in the first quarter in the physical mode. There will also be a ban on holding of meetings and conferences in five star hotels.

Purchase of vehicles is banned until further orders, except in case of ambulance and vehicles required for police duty.