Rs 10b ceiling for allowances

KATHMANDU, July 17: A meeting of five ministers at the Ministry of Finance on Friday agreed in principle to set the ceiling of the allowances for government employees at Rs 10 billion. The amount is Rs 4.8 billion more than the amount allocated in the budget to pay allowances to about 425,000 people on government payroll. The deficit amount will be transferred from other budget heads.



According to a highly-placed government source, the additional amount proposed would be sufficient to flatly increase some Rs 1,800 in the existing allowance.



However, agitating government employee unions are sharply divided over whether to flatly increase the allowance. Some of the government employees have also demanded adjustment in the allowance.



The source said that the government is finding it hard to arrange additional budget to adjust monthly allowance of peons and kharidar i.e. second class non-gazetted staffer as the former enjoys some Rs 1,060 more than kharidar despite being in the lowest post. This will cost the government another Rs 2 billion.



Meanwhile, talks between the government and the agitating civil servants on salary increase ended inconclusively on Friday. Both the parties have agreed to sit for another round of talks on Saturday at 2 pm.

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