Need for Seventh Pay Commission

The background of the demand for setting up the 7th CPC raised by the Central Government employees on the ground that the wage revision was due in January, 2011,it would be pertinent to examine the wages as a ratio to the revenue resources and revenue expenditure of the GOI in the crucial years 1960-61`,1975-=76, 1986-087, 1997-98 and 2006-07 the relevant years in which the 2nd, 3rd,4th 5th and 6th CPC recommendations were given effect to. It is not difficult to discern the declining trend over the years , which is suggestive of the erosion in the real wages of the Public servants in India.

Year	Revenue Budget		Wage Bill	Wage Bill as % of
	Total Revenue receipts	Total Revenue Expenditure.		Revenue Receipts	Revenue expenditure.
1960-61	1,297	1,246	417	31.3	33.5
1975-76	8,075	7,189	1,887	22.0	22.8
1986-87	33,083	40,860	6,100	18.4	14.9
1997-98	1,33,901	1,80,350	27,430	20.5	15.2
2006-07 (BudgetEstimate)	4,03,465	4,88,192	41,770	10.4	08.5

  We could see the emerging picture of a declining trend in the ratio of wages and salaries both with reference to revenue receipts and revenue expenditure.

 By

 Com K.K.N. Kutty

Secretary General.Confederation of CGEs and workers.