Government’s New Pay Scale
A Bold Decision

By Gandhi Raj Kafle

THIS year employees of the nation must be congratulated. After all, their salaries have increased substantially. Finance Minister Mahesh Acharya and his team members, who had been working to prepare the budget for Fiscal Year 2000/2001, must be thanked for the salary increase. "It’s the first time the government has raised the salary of its employees’ substantially. In this vein the decision is historic, so, the Finance Minister in particular and the government in general must be commended for the raise in salary.

In context of economic development of Nepal, low salary has been a long felt problem and grudge of civil servants. Yet, the problem was inadequately addressed to in the past due to the shortage of financial resources. And, the truth even today is that the economic condition of the nation has not changed remarkably. As such, why has the government decided to raise the salary of all employees so handsomely? Has there been any sudden and substantial improvement in the financial position of the country? Or, the employees’ record is delivering the goods and service to the people has improved to a remarkable extent these days? Furthermore, can the country’s socio-economic investment sustain the additional burden and also ensure us a promising result for speedy development in the years to come? Of course, the answers will be hard to come by. As such was it necessary to raise the salary of the employees. Nevertheless, the government must have done a through exercise before it raised the employees’ salary.

Some economic pundits emphatically say-if balanced development formula does not work than an imbalanced one could. For a country like Nepal, its economic development history does point out that nothing can be achieved in a few years if resources are allocated inadequately for all sectors. The government, in such a situation has to be efficiently choosy and holdly selective while investing in economic development; there is no alternative to it. The government, while announcing the budget for the Fiscal Year 2000/2001 has raised the salary of employees substantially, there is no doubt about it. But, this substantial rise too, can give a positive impact in the improvement of our economy only if we are be able to keep our economy in order.

In fact, many economic sectors are mutually complementary. If one is reformed, the others get the required impetus to be reformed. That’s why demonstration affect worldwide in many mays has been taken as an importantly inspiring factor of socio-economic change. Improvement in one sector, therefore, demonstrates a story of success and can also become a lead sector for macro-economic stability.

Indeed there are enough proof to support this. The British government did it through bureaucratic strengthening for centuries and the fact is that they have maintained their past glory even today. The quick, responsive, strategic and objective administration of the United States is said to be the backbone for the socio-economic success in that country. In fact, the development vision given to a nation by the political leadership is implemented through bureaucracy. Therefore, an effective, adequately facilitated and well-responsive civil system everywhere in the world is the need of the hour. With the advent of democracy, the political leadership, even though it changes frequently, has been increasingly realising this and has not lagged behind in strengthening the civil administration to face the forthcoming challenges.

Nepal’s bureaucracy had been weak for long also in terms of salary and other perks it got in the past. It was notable weaker in terms of smooth delivery of goods and services to the people as per the instructions and guidelines provided to it from time to time by the Council of Ministers. In fact, administrative procrasination, craving for commission, absenteeims, lethargy and bribery all have contributed make our public services delivery mechanism quite weak.

The government, therefore, wants to set its administration in order. For it, many panels were formed, many studies carried out, many suggestions recommended and many rhetorics made to implement the reports. But, the reality was that neither the country could provide enough facilities to itsemployees nor could the civil servants’ record of service delivery improved. The country was kept in an indecision state for some time, which in turn could not hoost the morale of civil servants.

Nevertheless, at least for employees this year, the budget for coming fiscal year, which has already been announced in the joint sitting of the Parliament nearly one and half month earlier, is exceptional. With it, the government, it seems, wants to take the bull by the horns. But, is the attractive pay scale enough to motivate the employees to move ahead towards this direction?

From the starting of the new fiscal year according to the budget speech, a government peon is getting Rs. 3000,00 as his monthly salary while the Chief Cabinet Secretary, which is the highest post in the administrative hierarchy in Nepal, will draw Rs. 14,000,00 per month. Similarly, the budget speech also commits to adjust the increment as per the regulations for raising pension for retired civil servants. Furthermore, an attractive provision is also announced for the employees, who want to take retirement after completion of 20 years of service. The new pay scale is applicable to the army, police, teachers, and corporation staff.

For the make of argument, it can also be said, the present pay hike is inadequate. But, if we realise the economic condition and strength of the country, the government’s revised pay scale is very liberal, very optimistic and very motivational. However, the room for initiating necessary efforts to control price rise, inflation and market uncertainty is always there. The Finance Minister says there is no need to worry about price rise only because of the rise in the pay scale of the civil servants. Certainly he is right if we think over it theoretically because it’s not the salary, but the fluctuation of demand and supply for goods that induces price and inflation rise. However, the market, as being noticed, sometimes shows a zigzag trend, which needs a free and transparent handling. Moreover, will the increased salary boost the morale of employees thereby to strengthening the Finance Minister hands for avoiding market distortions to protect the consumers rights in the days to come? While it remains to be ascertained, now that the employees have been given a substantial raise in the normally low salary scale, it behooves upon them to discharge their duties and responsibilities from their respective side to translate the vision of the political leadership into concrete fruits and services.

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