Wednesday, March 2, 2016

Pay commission award budgeted for in ministries allocations: Government

Pay commission award budgeted for in ministries allocations: Government

With absence of an explicit overall provision for the Seventh Pay Commission in Budget raising questions, government today said the once-in-a-decade pay hike has been built in as interim allocation for different ministries and Budget numbers were credible.

The voluminous Budget documents state that “the implementation of the 7th Pay Commission due from January 1, 2016 is to be implemented during the financial year 2016-17 as also the revised One Rank One Pension scheme for Defence services.”

“The government has made provisions for the additional liabilities on these count,” it said, without giving the amount allocated for implementation.

Economic Affairs Secretary Shaktikanta Das said the number cannot be quantified and it has been built up in budget of various ministries.

“We cannot really quantify how much we require in 2016-17. Because the Secretaries Committee have to first give its recommendations, then government will take a decision and then only we will know what is the requirement in FY17,” he said here.

Implementation of the pay commission report is to cost the government Rs 1.02 lakh crore.

“We have the Pay Commission recommendations with us, we have analysed the likely requirement and it has been built into the Budget of various ministries. Some suitable interim provisions have been made,” he said without elaborating. “Hence the expenditure and revenue numbers are credible.”

Das said Finance Minister Arun Jaitley in his Budget speech stated that interim provisions have been made. “And these provisions are there in the Demands for Grants for individual departments and ministries. It is built into and subsumed into those allocations.”

“The Budget reaffirmed the commitment of the government to continue with the process of fiscal consolidation as projected in the Medium Term Fiscal Policy Statement of 2015-16 despite a tough external environment,” the Budget documents said.

Accordingly, fiscal deficit has been projected at 3.5 per cent of GDP in 2016-17. “In accordance with the amended FRBM targets, the fiscal deficit of 3 per cent is projected to be achieved in 2017-18 onwards.”
“Keeping in view the challenge of reduction of fiscal deficit by 0.4 per cent of GDP in a difficult year in 2016-17 with substantial additional liabilities on pay revision etc, the government is quite optimistic of fully achieving the fiscal deficit target of 3 per cent or below by March 2018,” the documents said.
Inputs with PTI

Government provides fund for pay commission implementation in Budget

Government provides fund for pay commission implementation in Budget

Central Government provided the fund of excess Rs 28,300 crore for the implementation of Seventh Pay Commission recommendations on Monday in the Budget estimates of fiscal 2016-17, presented by the Finance Minister Arun Jaitley.

The government has provided a fat allowances bill of Rs 88,932 crore in the Budget, almost as much as the total basic pay bill of Rs 90,598 crore for one crore central government employees, including pensioners.
According to the budget estimates of 2016-17, the total pay bill has increased by Rs 28,300 crore to Rs 90,598 crore in the next financial year as compared to Rs 62,230 crore in 2015-16.

The allowances bill has gone up by Rs 37,000 crore, taking the amount to Rs 88,932 crore in next fiscal.
The total provision towards pay, allowances and travel expenses of central government employees has been to the tune of Rs 1,83,935 crore in the next fiscal as against the Rs 1,18,248 crore in this financial year.
The government has made provisions as per the recommendations of the 7th Pay Commission, though the actual disbursement would depend on the suggestions of the empowered committee of secretaries which has been constituted for the implementation of the Pay Commission recommendations.

The Pay Commission had calculated the total impact of the increase in salaries and allowances at Rs 1.02 lakh crore of which it had estimated the increase in pay to be at Rs 39,100 crore and allowances at Rs 29,300 crore. In percentage terms, the overall increase according to the Pay Commission was about 23.5% where the increase in pay was 16% and the allowances at 63%.

The significant jump in allowances could be on account of house rent, which has been recommended at 24% of the basic pay, besides others. The minimum pay as per the pay panel report was set at Rs 18,000 and the maximum at Rs 2.25 lakh for secretary-level officers. Accordingly, the house rent allowance (HRA) for secretaries would be more than Rs 56,000.

However, this is not the first time that allowances bill is likely to be as much or more than the pay bill. In 2014-15, the salary bill as per actual expenditure was Rs 53,371 crore while the allowances was Rs 76,613 crore.
Inputs with TNN

Union budget 2016-17 and 7th CPC demands

Union budget 2016-17 and 7th CPC demands

“Main consideration in the private and public sector being ‘profit’, and in Central Government it is “service” even through Railways, Income Tax & Central Excise are revenue earning departments, hence an equal comparison with the Government is not going to be ever possible. Performance for the Government is usually not measured in terms of profit, but in terms of achieving societal goals.”

Union budget 2016-17 and 7th CPC demands

The Union budget 2016-17 presented by Hon’able Finance Minister in the parliament on 29th Feb 2016 has the total expenditure in the Budget for 2016-17 has been projected at Rs 19.78 lakh crore, consisting of Rs 5.50 lakh crore under Plan and Rs 14.28 lakh crore under Non-Plan. The increase in Plan expenditure is in the order of 15.3% over current year.

The fiscal deficit in RE 2015-16 and BE 2016-17 have been retained at 3.9% and 3.5% of GDP and the growth of GDP has now accelerated to 7.6%. This clearly shows that the finance of the Central Government is in good shape.

The Hon’able Finance Minister in the parliament on 29th Feb 2016 has stated that the next financial year 2016-17 will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence OROP.

Let us examine the last year spending on various ministries

Funds unspent-panchayati-raj-all-ministries


This clearly shows many ministries have not spent the money allocated, this due to mainly the shortage of talented staff and various policies’ of the Government.

Today, the weakest link in respect of any government policy is at the delivery stage. This phenomenon is not endemic to India. Internationally also, there is an increasing emphasis on strengthening the delivery lines and decentralization with greater role being assigned at delivery points, which actually determines the benefit that the common citizen is going to derive out of any policy initiative of the government.

More the talented persons are there in Government services, more the delivery of the government schemes will be there, thus the Government machinery will be more effective and common man will benefit a lot.
The 7th CPC has not improved the service condition of the Central Government employees, it has provided just 14.3 % wage hike against the staff side demand of more than 70% wage hike.

The person joining a Government Service is not just for the employment is for a whole career, if a person joins a Government Service he will quit/ retire from the job only after putting 30 years service or more. In case of the person joining a private company he will jump from one company to another at least five times in thirty years.

The talented persons from all over the country are moving to IT, BT and private sectors, rather than Central Government sector. Because of the lower salary / pay structure in Central Government sector compared to IT and BT sectors and complex nature of rules and regulations in Central Government sector and also the skill and merit of the worker/ employee is not into account in Central Government sector.

Main consideration in the private and public sector being ‘profit’, and in Central Government it is “service” even through Railways, Income Tax & Central Excise are revenue earning departments, hence an equal comparison with the Government is not going to be ever possible. Performance for the Government is usually not measured in terms of profit, but in terms of achieving societal goals.

The minimum wage should be calculated using Dr Aykroyd formula and following 15th ILC norms. The actual market rates should be adopted , not the imaginary rates as provided the 7th CPC should be adopted . This will pay way of meaningful wage hike and fitment formula. House rent is from Rs 7000/- per month to Rs 35,000/- per month. The 7th CPC has provided just from Rs 3000/- to Rs 25,000/- per month. The old HRA rates should be adopted.

The strength of Central government employees should increase. In 1990 Population of the country is 85 crores – Central Government Employees strength is 40 lakhs . In 2014 Population of the country is 125 crores – Central Government Employees strength is 31 lakhs. India has 1,622.8 government servants for every 1,00,000 residents. In sharp contrast, the U.S. has 7,681. The Central government, with 3.1 million employees, thus has 257 serving every 1,00,000 population, against the U.S. federal government’s 840.
Non-filling up of vacant posts has resulted in increased work load on the existing employees and delivery of the Government schemes.

Hence the Government should adopt a proper wage policy for the central Government employees and improve vastly the 7th CPC recommendations and fill up vacant post to deliver the Government schemes to the needy of the country. Now that the Central Government finances are good. This way both Central Government employees will benefit and the common man will also benefit.

Source: http://karnatakacoc.blogspot.in/

Recovery of wrongful and excess payments made to Government servants – Dopt orders on 2.3.2016

Recovery of wrongful and excess payments made to Government servants – Dopt orders on 2.3.2016
F.No.18/03/2015-Estt. (Pay-I)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
New Delhi, the 2nd March, 2016
OFFICE MEMORANDUM
Sub: Recovery of wrongful / excess payments made to Government servants.

The undersigned is directed to refer to this Department’s OM No.18/26/2011-Estt (Pay-I) dated 6th February, 2014 wherein certain instructions have been issued to deal with the issue of recovery of wrongful / excess payments made to Government servants in view of the law declared by Courts, particularly, in the case of Chandi Prasad Uniyal And Ors. vs. State of Uttarakhand And Ors., 2012 AIR SCW 4742, (2012) 8 SCC 417. Para 3(iv) of the OM inter-alia provides that recovery should be made in all cases of overpayment barring few exceptions of extreme hardships.

2. The issue has subsequently come up for consideration before the Hon’ble Supreme Court in the case of State of Punjab & Ors vs Rafiq Masih (White Washer) etc in CA No.11527 of 2014 (Arising out of SLP(C) No.11684 of 2012) wherein Hon’ble Court on 18.12.2014 decided a bunch of cases in which monetary benefits were given to employees in excess of their entitlement due to unintentional mistakes committed by the concerned competent authorities, in determining the emoluments payable to them, and the employees were not guilty of furnishing any incorrect information / misrepresentation / fraud, which had led the concerned competent authorities to commit the mistake of making the higher payment to the employees. The employees were as innocent as their employers in the wrongful determination of their inflated emoluments. The Hon’ble Supreme Court in its judgment dated 18 th December, 2014 ibid has, inter-alia, observed as under:

“7. Having examined a number of judgments rendered by this Court, we are of the view, that orders passed by the employer seeking recovery of monetary benefits wrongly extended to employees, can only be interfered with, in cases where such recovery would result in a hardship of a nature, which would far outweigh, the equitable balance of the employer’s right to recover. In other words, interference would be called for, only in such cases where, it would be iniquitous to recover the payment made. In order to ascertain the parameters of the above consideration, and the test to be applied, reference needs to be made to situations when this Court exempted employees from such recovery, even in exercise of its jurisdiction under Article 142 of the Constitution of India. Repeated exercise of such power, “for doing complete justice in any cause” would establish that the recovery being effected was iniquitous, and therefore, arbitrary. And accordingly, the interference at the hands of this Court.”

“10. In view of the afore-stated constitutional mandate, equity and good conscience, in the matter of livelihood of the people of this country, has to be the basis of all governmental actions. An action of the State, ordering a recovery from an employee, would be in order, so long as it is not rendered iniquitous to the extent, that the action of recovery would be more unfair, more wrongful,  more improper, and more unwarranted, than the corresponding right of the employer, to recover the amount. Or in other words, till such time as the recovery would have a harsh and arbitrary effect on the employee, it would be permissible in law. Orders passed in given situations repeatedly, even in exercise of the power vested in this Court under Article 142 of the Constitution of India, will disclose the parameters of the realm of an action of recovery (of an excess amount paid to an employee) which would breach the obligations of the State, to citizens of this country, and render the action arbitrary, and therefore, violative of the mandate contained in Article 14 of the Constitution of India.”

3. The issue that was required to be adjudicated by the Hon’ble Supreme Court was whether all the private respondents, against whom an order-of recovery (of the excess amount) has been made, should be exempted in law, from the reimbursement of the same to the employer. For the applicability of the instant order, and the conclusions recorded by them thereinafter, the ingredients depicted in paras 2&3 of the judgment are essentially indispensable.

4. The Hon’ble Supreme Court while observing that it is not possible to postulate all situations of hardship which would govern employees on the issue of recovery, where payments have mistakenly been made by the employer, in excess of their entitlement has summarized the following few situations, wherein recoveries by the employers would be impermissible in law:-
(i) Recovery from employees belonging to Class-III and Class-IV service (or Group ‘C’ and Group ‘D’ service).
(ii) Recovery from retired employees, or employees who are due to retire within one year, of the order of recovery.
(iii) Recovery from employees, when the excess payment has been made for a period in excess of five years, before the order of recovery is issued.
(iv) Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post, and has been paid accordingly, even though he should have rightfully been required to work against an inferior post.
(v) In any other case, where the Court arrives at the conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an extent, as would far outweigh the equitable balance of the employer’s right to recover.
5. The matter has, consequently, been examined in consultation with the Department of Expenditure and the Department of Legal Affairs. The Ministries / Departments are advised to deal with the issue of wrongful / excess payments made to Government servants in accordance with above decision of the Hon’ble Supreme Court in CA No.11527 of 2014 (arising out of SLP (C) No.11684 of 2012) in State of Punjab and others etc vs Rafiq Masih (White Washer) etc. However, wherever the waiver of recovery in the above-mentioned situations is considered, the same may be allowed with the express approval of Department of Expenditure in terms of this Department’s OM No.18/26/2011-Estt (Pay-I) dated 6th February, 2014.

6. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

7. Hindi version will follow.
sd/-
(A.K.Jain)
Deputy Secretary to the Government of India
Authority : www.persmin.gov.in

SEVENTH CENTRAL PAY COMMISSION: PUBLIC NOTICE: 7th CPC

SEVENTH CENTRAL PAY COMMISSION

GOVERNMENT OF INDIA
PUBLIC NOTICE

Government of India, vide its Resolution No. 1/1/2013-E.III(A) dated the 28th February, 2014 have constituted the Seventh Central Pay Commission with the following terms of reference :-

a) To examine, recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therin as well as the specialized needs of various Departments agencies and services, in respect of the following categories of employees:-
(i) Central Government employees-industrial and non-industrial;
(ii) Personnel belonging to the All India Services;
(iii) Personnel of the Union Territories;
(iv) Officers and employees of the Indian Audit and Accounts Department;
(v) Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament; and
(vi) Officers and employees of the Supreme Court.
b) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as the retirement benefits of the personnel belonging to the Defence Forces, having regard to the historical and traditional parties, with due emphasis on the aspects unique to these personnel.

c) To Work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, inter-alia, its bearing upon; performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate Incentive Scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalization and simplification with a view to ensuring that the pay structure is so designed as to take these into account.

f) To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g) To make recommendations on the above, keeping in view:
i. the economic conditions in the country and the need for fiscal prudence;
ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures;
iii. the likely impact of the recommendations on the finances of the State Governments,which usually adopt the recommendations with some modifications.
iv. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and
v. the best global practices and their adaptability and relevance in Indian conditions.
h) To recommend the date of effect of its recommendations on all the above.

2. The Commission invites all associations, unions, institutions, other organisations and interested individuals to send memoranda containing their views on the aforesaid matters so as to reach Office of Seventh Central Pay Commission latest by 31st May, 2014. This memoranda/material may be sent to PO Box No. 4599, Hauz Khas P.0, New Delhi 110 016 (Ten copies) and in case of e-mail to secy-7cpc@nic.in

Meena Agarwal
Secretary
Seventh Central Pay Commission
davp 15101/11/0004/1415
7cpc.india.gov.in

NJCA Circular – NJCA will meet again on 7.3.2016

NJCA Circular – NJCA will meet again on 7.3.2016

NJCA
National Joint Council of Action
4, State Entry Road, New Delhi – 110055
No.NJC/2015/7th CPC
March 2, 2016
To
All Constituents of NJCA,

Dear Comrade,
The NJCA met today – reviewed the discussions at the Standing Committee Meeting with the Cabinet Secretary held on 1.3.2016 – (6.45 to 8.45 PM). The NJCA has decided to continue with the preparation of the Strike.

The NJCA will meet again on 7th March evening.
Yours fraternally,
sd/-
(Shiva Gopal Mishra)
Convener
Source : Confederation

7th Pay Commission expressed its regret about transition from OPS to NPS

7th Pay Commission expressed its regret about transition from OPS to NPS

7th-Pay-Commission-OPS-NPS
7th Pay Commission expressed its regret about transition from Old Pension Scheme to New Pension Scheme in its report.

2004-2011 Entrants : Government employees who have joined service between 2004 and 2011 have suffered due to delay in finalizing the structure of the NPS and the issue of detailed instructions. Although they have made regular contributions, in many cases, this money and/or counterpart contributions were not deployed in the market. In the case of AIS officers, some states are yet  to release counterpart contributions or pay interest on delayed contributions. This has led to a situation where the accumulated corpus even after 11 years of service could be meagre. It is necessary that this situation which arose during the transition from OPS to NPS be addressed.

The Commission therefore recommends that Central Governments and State Governments should, in a time bound manner, ensure that all the due contribution along with compounded interest, where contributions have been delayed, be deposited in the accounts of the beneficiaries. Advisories should be issued to the State Governments to deposit amounts, if not already done, in respect of NPS beneficiaries belonging to All India Services.

Many Association have pointed out that unlike the facility under GPF, it is not possible to make withdrawals under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

The Commission notes that under the NPS Tier-I account, a subscriber is permitted to make partial withdrawal of twenty five percent of the contributions made to his/her individual pension account for certain specified purposes. Such withdrawals are permitted a maximum of three times during the entire tenure of subscription and a period of at least five years should have elapsed between two such withdrawals.

The Commission further notes that there exists a voluntary Tier-II account. Under this account, a subscriber can, at any time, withdraw the accumulated wealth either in full or part and there is no limit on such withdrawals provided the account has sufficient balance of accumulated pension wealth to cover the amount being withdrawn. However, the Tier-II account is yet to be made operational. The Commission therefore recommends that PFRDA should take steps to make the Tier-II accounts operational as early as possible to enable the NPS subscribers the facility of withdrawals from their accounts in case of requirement.

Transparency under NPS : Many associations and individuals have complained that the information relating to the NPS is inadequate, resulting in high degree of uncertainty in the minds of contributors about post-retirement benefits. The Commission noted that PFRDA sends a communication to every participant each month with the current pension wealth and the latest contribution that has been credited. The Commission recommends that focused efforts be made to capture email addresses and mobile numbers of subscribers so that seamless communication is ensured for all subscribers. The Commission recommends that consultation with stakeholders should also be held periodically in different parts of the country.
The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission also recommends that steps should be taken for establishment of an Ombudsman for redressing individual grievances relating to NPS.

Tax Treatment under the NPS : NPS is under the Exempt–Exempt – Tax (EET) regime while the General Provident Fund under the OPS is under Exempt–Exempt–Exempt (EEE) dispensation. Under the NPS, while the contributions and the accumulations are tax-exempt, withdrawals are taxable. As such, this is an inferior tax treatment when compared to other pension programmes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund wherein contributions, accumulations and withdrawals are tax-exempt.

The Commission feels that tax neutrality should be ensured across various avenues for long term savings for post retirement incomes so that the employees covered by NPS are not at a disadvantage. The Commission therefore recommends that withdrawals under the NPS should be tax-exempt to place NPS at par with other pension schemes. The Commission also recommends that the service tax levied at the time of annuity purchase by NPS subscribers should be exempted.

Central Government Employees Group Insurance Scheme 1980 - Finmin issued tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016

CGEGIS Table 2016 – Finmin issued tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016
No.7(1)/EV/2014
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, Dated the 26th February, 2016

OFFICE MEMORANDUM

Sub: Central Government Employees Group Insurance Scheme-1980 – Tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016

Every year two Table of Benefits are issued by the Ministry of Finance on calendar year basis for the savings fund to the beneficiaries under Central Government Employees Group Insurance Scheme (CGEGIS)-1980. while one Table of Benefits for the savings fund of the scheme is based on a subscription of Rs.10 per month per unit from 1.1.1982 to 31.12.1989 and Rs.15 per month per unit w.e.f. 1.1.1990 onwards, the other Table of Benefits for the savings fund is based on a subscription of Rs.10 per month in respect of the employess who had opted out of the revised rates of subscription w.e.f. 1.1.1990.

2. The two Table of Benefits under CGEGIS-80 for the calendar year 2016, prepared by IRDS, are enclosed. The benefits in the Tables have been worked out on the basis of interest @8.7% per annum (compounded quarterly), as notified by Department of Economic Affairs.

3. While calculating the amount it has been assumed that the subscription has been recovered or will be recovered from the salary of the month in which a member ceases to be in service failing which it should be deducted from accumulated amounts payable.

4. In its application to the employees of Indian Audit and Accounts Department this Office Memorandum issues in consultation with the Comprtroller and Auditor General of India.
sd/-
(Amar Nath Singh)
Deputy Secretary to the Government of India


cg-employees-group-insurance-scheme-1980-table1

cg-employees-group-insurance-scheme-1980-table2

Authority: www.finmin.nic.in
Click to view the original order

Outcome of meeting with Cabinet Secretary held on 1.3.2016 – Confederation

Outcome of meeting with Cabinet Secretary – Confederation

MEETING WITH CABINET SECRETARY

                    Empowered Committee of Secretaries headed by Cabinet Secretary has held first round of discussion with JCM National Council Standing Committee members on strike Charter of demands on 1st March 2016. Staff Side explained the justification of each and every demand and conveyed the large scale resentment among the Central Government Employees to the Cabinet Secretary . Cabinet Secretary has not made any commitment on any demand. He informed that this is only a preliminary interaction with the Staff Side.

Com. M. Raghavaiyya Leader Staff Side, Com. Shiva Gopal Mishra Secretary Staff Side and other Standing Committee members attended.

Confederation was represented by Coms. KKN Kutty , M. Krishnan & M.S. Raja .
Meeting commenced at 0645 P.M. & ended at 0845 P.M.
M. Krishnan
Secretary General Confederation.

Source: Confederation

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