New Delhi: The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations, a Finance Ministry official said on Monday on condition of anonymity.
"The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.
Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos," the official said.
He further said “the issue of increased financial activities after demonetisation compels the government to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease.
However the government wants to issue the higher allowances notification speedily in a time bound manner."
The committee on allowances head Finance Secretary Ashok Lavasa said in October, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."
The government constituted the committee on allowances in June headed by Finance Secretary Ashok Lavasa to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance.
"The committee has been asked to submit its report within four months and it was ready to submit its report in advance but the government intends to accept the report after December 30, deadline for depositing demonetised notes," the official said.
Existing allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.