Political economy of extension in age of retirement
- Dr. Pyara Lal Garg
Political economy of extension in age of retirement

THE TOTAL EXPECTED Revenue receipts of Punjab Government for the year 2017-18 as per Budget estimates are to the tune of Rs. 60,080 crore, while the estimated expenditure is Rs. 74,864 Crore. Revenue deficit is pegged at Rs. 14784 Crore which is 3.18% of the GDP (Gross Domestic Product) for the year. In this total expenditure, Rs. 30979 crore (51.56%) that is more than half is to be incurred on salaries and pensions alone. Salary component being 20,832 crore and that for pension Rs. 10,147 crore.
Another addition is the interest payments on the loans raised; the same turns out to be Rs. 14,149 crore. After taking into account these three items the remaining amount for all other chores is Rs. 14,952 crore. These figures speak of the tragedy of the economy of Punjab, in it are hidden the secrets of the suicides of farmers and farm labour, the secrets of abject poverty in rural areas and the secrets of the unemployment of around twenty lakh youth out of a total of 1 crore 8 lakh youth in age group of 15 -34 years.
In the Budget no major effort has been resorted to reduce the debt burden by reducing the unnecessary expenditure or by making the administration act promptly in accordance with law. In reduction of expenditure and for providing employment to youth, the key item was to have a thorough look at the employees and officers deployed in Government departments and Semi Government organisations, but the same has not been undertaken.
The previous Government had permitted two year extension in service to the employees, as a consequence about 25,000 employees and officers who were to retire remained in jobs. With this loop sided policy, the expenditure on salaries and other facilities to these employees has increased , the chances of employment to youth have been given a heavy blow. The factors and reasons being quoted behind this policy of extension in age of retirement are that the Government has no finances for payment of retiral benefits to the retiring employees.
In the recent past when the Government started thinking on the issue of reverting back to the policy of retirement at 58 years, hurdles have been created by the bureaucracy and the rest of the employees by presenting fake figures. Initially they made out that Rs. 1700 crore is required for giving retiral benefits, then said Rs. 2600 crore is required which in order to give a last blow was projected to be Rs. 5000 crore.
The trend of getting wrong decisions and favourble decisions for the personal gains of the involved ones, by giving wrong data, fake figures and by way of concealment's is increasing because no action is initiated against such authorities who deceive the Government by way of fake data. The inaction on the part of the Government has emboldened such officers for other irregularities and  a huge increase in the Government expenditure is the outcome. The same however is unnecessary and is not required to be incurred at all otherwise.  

If we analyse the facts and figures, we find that the officers who have attained the age of superannuation that is the age of 58 years, and who are still working in state administration as PCS or PPS officers or are working in the departments of, Excise and Taxation, Agriculture, Education (schools and colleges), PWD, Finance, Planning, Panchayat Raj, Rural Development, Civil Supplies, Revenue,  Health, Medical Education and so on, in the pay scale of 37000-67000 with grade pay of 8600, 8700, 8800, 8900 and 10,000, are drawing a monthly salary of around Rs.1,50,000 to Rs. 1,75000. Their pension calculates out to be around Rs. 65000 – 85000.
Thus with the retirement of one officers Government saves Rs. 85000 to Rs. 1,15,000 each month. The new recruits are to be employed on initial basic salary in the pay band which calculates to be around Rs. 15600 to Rs.22000  per month. Thus after deployment of two new employees and after paying full pension of the retiree, the Government saves around Rs. 55000 to Rs. 69000 per month against one such employee. For deferment of the retiral benefits even if they are paid interest @ 7% (Banks rate of interest is less than 7%) the interest turns out to be Rs. 15000 to Rs. 20,000 per month. This interest income of the employee shall be taxable so Government shall get increased state share on income tax too. As such by taking into account all facts The Government shall be saving Rs. 40,000 to Rs. 49,000 per month per employee in addition to providing employment to two young persons in his her place.
As such by this measure the Government can save the finances, reduce expenditure on salaries drastically and open the doors for employment in case of each category of employees. 

But it has been observed that by this jugglery of figures, by presenting a terrorising state of affairs before the Government by way of fake data and concealment of facts, for serving personal ends anti people decisions are got done from the Government.
A concrete example of this misuse and deception is the department of Medical Education and Research, where in by presenting fake figures before the Council of Ministers (Cabinet) and by creating a fear psychosis of the de-recognition of the Colleges by Medical Council of India, the then Director manipulated the creation of such unrequired posts as were not acceptable to the Medical Council of India. Later the Government via notification dated February 2 ,2016, instead of abolishing these unnecessary posts changed the designation of the said posts of Senior Residents to that of Demonstrator/tutor.
The doctors who are deployed against such uncalled posts, have to be those who are possessing  MD/MS and are drawing higher salary. Needless to say that as per regulations of Medical council  of India, for the post of Demonstrators /tutors only MBBS doctors are required. (We had hundred of MBBS doctors working in the said colleges already). The Government had to issue a fresh notification changing the designation of these posts which are in Higher grade and are not required at all. The Medical teachers are being re-employed and being paid  the full salary last drawn as well as the pension. This re-employment in majority of the cases is against the purpose mentioned in the official records at the time of framing such a policy. As such in department having a total budget of around 350 crore, and excess unnecessary expenditure has been created to the tune of Rs. 50 to 60 crore. This can be saved after an inquiry.   

The facts about the extension in age of retirement of employees need to be inquired into by an impartial inquiry. The number of Senior Officers (A –Grade) working in the Government of Punjab, as on March 31st, 2013 was 31,108 and the same rose to 32,429 by March 2014. The officers in order to justify the increase in  the retirement age, resorted to many types of tactics and maneuvers. After retirement most of them become irrelevant, lose power and pelf, no body is willing to employee them even on meager salary.
Between March 2013 to March 2015 the number of Officers in Grade "B" increased from 46,777 to 55,877. The number of Government and Semi- Government Employees and officers in 2013,2014 and 2015 was as per the table given below:


No. of Employees on 

31st March 2013

No. of Employees on 

31st March 2014

No. of Employees on 

31st March 2015


Semi Govt













































Panchayat Raj



















With the increase in age of retirement other benefits too accrue like the earned leave for 30 days, half pay leave of 20 days, casual leave of 20 days, whereas new employee is entitled to 15 days earned leave and 10 days casual leave.

From the above table depicting the number of officers and employees, it is evident that on 31st March 2015 there were 79,200 officers of Grade A & B, and 1,52,392 that of Grade C were in position. By taking 33 years as the average length of service, around 24,000-25,000 officers and employees shall be falling among the ones enjoying extension in service.
By adding the ones who have attained 58 years of age the it is estimated that number shall rise to around 30,000. In accordance with the calculations shown above, by employing two new ones in place of each retiree, around 60,000 young persons shall get the job.
In addition there shall be a saving of around Rs. 750 crore to the state exchequer. There can be a saving of around Rs. 50 crore in Medical Education and research Department alone. PCMS doctors posted against the newly created posts in excess, in Government Medical Colleges can be transferred to their cadre of PCMS in field, thus the acute shortage of specialists in the field can be reduced. With new recruitment and due to energetic and increased manpower the quality of services shall improve.
The savings can be used to solve the problems of the farmers and farm labor. The fiscal deficit shall also come down. But the purpose behind increase in age of retirement and re-employment of retirees is that they keep quiet (shut their mouth) in lieu of greed of Government job.

Disclaimer : PunjabToday.in and other platforms of the Punjab Today group strive to include views and opinions from across the entire spectrum, but by no means do we agree with everything we publish. Our efforts and editorial choices consistently underscore our authors' right to the freedom of speech. However, it should be clear to all readers that individual authors are responsible for the information, ideas or opinions in their articles, and very often, these do not reflect the views of PunjabToday.in or other platforms of the group. Punjab Today does not assume any responsibility or liability for the views of authors whose work appears here.

Most shared Punjab Today articles:

PEHLU KHAN CASE - Golden Day in the History of Indian Police: Will govt now compensate The Magnificent Six? The nation needs to know

Mr Home Minister, will you be visiting Farooq Ahmad Dar's house? How else will PM Modi's narrative of embracing Kashmiris & Rajnath SIngh's words mean anything substantive?

The Ryan Debate: How India missed the great cctv angle? Media only wants to debate the need for separate toilets for bus drivers and conductors. The most vulnerable are not covered by cctv, so they are not covered by tv either.

Political economy of extension in age of retirement: Dr Piare Lal Garg dwells upon what is wrong with policy formulation on retirement age.

The Gorakhpur Dead Speak to Punjab: From the infants burnt alive in Patiala to those who died in Gorakhpur, India's health parametres are escaping the media's radar.

WE WILL KILL 40-50: Haryana BJP, Govt calculated death toll before firing first bullet. Haryana BJP's party affairs incharge makes explosive revelations.

RELAX! ALL 30 WERE DERA PREMIS: The utter absence of any questions about the death of 30 people on the roads of a city reeking of wealth says something stinking about its conscience.

LET'S KILL PAASH: Dr Sumail Singh Sidhu unravels the layers of the latest row about the revolutionary poet’s work and asks why is Paash being summoned from the ashes to answer our allegations?

THE BLOODY VILLAIN OF PARTITION: As Radcliffe drew a line between India and Pakistan, resulting in 600,000 lives lost and 14 million displaced, we revisit the key question: Were the massacres avoidable, preventable?

A DOKLAM IN EVERY FIELD: Farmers not only produce food. They produce peace. And agitated farmers are no guarantee of a lasting peace. Not every danger lurks at Doklam.

TO SUKHBIR SINGH BADAL, SINCE NO ONE ELSE WILL SAY IT: Speaking truth to power, and asking some tough questions to a party that refuses to behave like one. Does it even register the sense of a loss?

DECONSTRUCTING NAVJOT SINGH SIDHUThis is a duel -- pistols drawn, hands on hip, 20 steps across, aim taken, fingers on trigger. Right now, it looks like Amarinder has forgotten his gun home. Sidhu is itching to shoot. 

SURGICAL STRIKE YOU DID NOT KNOW ABOUT: Indian jawans killed everyone at this forward post of Pakistan and brought back seven bodies besides a trophy signed by Musharraf.

PUNJAB: AN IDEA IN SEARCH OF WORDS: The English writing on Punjab has constructed an urbane Punjabi universe. Punjab is more than a poster boy of progress or a renegade from the promise of modernity.



Punjab Today believes in serious, engaging, narrative journalism at a time when mainstream media houses seem to have given up on long-form writing and news television has blurred or altogether erased the lines between news and slapstick entertainment. We at Punjab Today believe that readers such as yourself appreciate cerebral journalism, and would like you to hold us against the best international industry standards. Brickbats are welcome even more than bouquets, though an occasional pat on the back is always encouraging. Good journalism can be a lifeline in these uncertain times worldwide. You can support us in myriad ways. To begin with, by spreading word about us and forwarding this reportage. Stay engaged.

— Team PT

Comment by: Dr. Robert

We are urgently in need of kidney donors in Apollo Hospital India for the sum of $800,000.00 USD (6.80Crores). For more details contact us via the below Email.
E-mail: apollo.hospital101@gmail.com
Mobile Number: +917338349363
Whats-app: +917338349363


Comment by: Dr. Smith

AMOUNT IS $850.000.00USD.
Dr. Smith Raymond
call number: +919148839161
WhatsApp: +919148839161
Email: fortishospitals65@gmail.com



your name*

email address*

You may use these HTML tags:<p> <u> <i> <b> <strong> <del> <code> <hr> <em> <ul> <li> <ol> <span> <div>

verification code*





Copyright © 2016-2017