Big salary raise for public servants

THE Pay and Service Commission has proposed a 100 percent hike on salaries of public servants on average, which, if implemented, would raise the government spending on salary and allowance by 63.7 percent. The proposal also recommended that the government provide additional benefits to its employees, including mandatory health insurance, a flat and, for officers of grade three and above, car loan facilities.

In principle, we are for reasonable and attractive incentive packages for government employees. We are also heartened to note that long-term interests of employees have been taken into account in the new proposal. However, before finalising the proposal and implementing it, the government should seriously consider the burden of the recommended hike on the budget, the brunt of which will be borne by tax-payers. Despite the finance minister's assurance to the contrary, the 100 percent increase will also likely exacerbate inflation in the country. We would like to know what measures will be taken to safeguard the economy from inflationary pressures although, as the finance minister says, these will be implemented from July 2015.

The increase in salary and incentive packages should have a curbing effect on corruption while improving the quality of services provided by public servants. In order to ensure public benefit, the government must establish a mechanism for objective and systematic performance audits. This would be to evaluate whether public servants and institutions are working efficiently and effectively to deliver on their remits. The long felt need for bureaucratic reform must be addressed to increase accountability and transparency of public servants across the board.