An official confirmed that the Madhya Pradesh government is considering a scheme to save money by offering state employees in non-essential departments up to five year’s leave with payment of half salary.
How Does This Help?
With this move, the state is hoping to save at least Rs 6,000 crore annually.
Basically, this scheme is popularly known as furlough scheme.
It has been introduced by some countries such as the United Kingdom and United States, where employees can avail three years’ leave along with up to 70% of their monthly salary within a limit.
During this period, the employees are free to work anywhere or start a business and opt for voluntary retirement after the break.
The scheme has been devised since the state is reeling under a debt of Rs 2.53 lakh crore, according to a senior MP finance department official.
On top of that the revenues also have dipped by up to 30% caused by Covid-19’s adverse impact on the economy.
A senior finance department official said, “We have sent the proposal for the chief minister’s approval,” on condition of anonymity.
Why Would This Happen?
Currently, the government is thinking of ways to “increase” the revenue and also “cut the expenditure” to deal with the economic impact of Covid-19 and the furlough “scheme is part of this plan” according to State finance minister Jagdish Deoda.
Under this scheme, the employees in non-essential departments will be allowed 3 to 5 years of leave with payment of half salary.
During this time, they will be free to work elsewhere during the leave or start a business.
It is noteworthy here that “They will not get any increment and extra allowances during this period. But this leave period will not break their service,”.
Also note that the employees facing departmental inquiry or under suspension can not avail the scheme.
The other condition is that the scheme will not be applicable to essential departments such as home, health, education and revenue, the officer said.
What About Employees?
The internal survey indicates that employees who are earning less than Rs one lakh were excited about the scheme.
“Especially those who are above 50 years of age and have a few years left in government jobs,” sources said.
In order to overcome the concern that the scheme may affect manpower hampering work, the finance department will allow for outsourcing of work, if and when needed.
It is not the first time when Such a scheme is being introduced as In 2002, then chief minister Digvijaya Singh introduced a similar scheme to reduce government expenditure.
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