Wednesday, May 4, 2016

FINANCIAL IMPACT OF DUE TO 7TH PAY COMMISSION: DETAILS OF RAJYA SABHA Q&A

Financial Impact Due To 7th Pay Commission: Details Of Rajya Sabha Q&A (In English & Hindi)

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
QUESTION NO 241
ANSWERED ON 26.04.2016
Requirement of growth in economy for sustaining the burden of wage increase
241 Shri A. K. Selvaraj
Will the Minister of FINANCE be pleased to satate :-
(a) whether it is a fact that India needs to grow by an additional 1-1.5 percentage points so that it can sustain the burden of wage increases and pass on more benefits to workers;

(b) if so, the details thereof;

(c) whether it is also a fact that there would be a burden of Rs. 1.02 lakh crore on account of implementation of the Seventh Pay Commission; and

(d) if so, the details thereof?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) and (b): The Gross Value Added (GVA) at basic prices is the sum of compensation of employees including social contributions made by the employer (CE), operating Surplus and mixed income of the self-employed (OS/MI), consumption of fixed capital (CFC) and taxes net of subsidies on production. The share of compensation of employees stood at 33.6 per cent in the year 2014-15 (the latest year for which information is available), increasing from 32.9 per cent in 2012-13. Simultaneously, the growth rate of GVA at constant basic prices increased from 5.4 per cent in 2012-13 to 7.1 per cent in 2014-15. 

Among the broad sectors, public administration & defence had the highest share of compensation of employees, i.e., 85.0 per cent of the GVA at basic prices, in 2014-15. Higher wages/compensation of employees may have an impact on private final consumption and hence on GDP growth. At the same time, higher wages in public administration & defence may place added demand on the budgetary resources of the Government. On account of this possible two-way relationship, it is difficult to exactly calculate the GDP growth required to sustain the higher wage bill. 

(c) and (d): The Seventh Pay Commission, in its Report, has projected an additional financial implication on implementation of its recommendations, of Rs. 1,02,100 crore, which is about 0.7 per cent of the GDP at current market prices of Rs. 1,50,65,010 crore projected in the Budget 2016-17. The details are given below:

2016-17
(Without 7th  Central Pay Commission)
2016-17
(With 7th Central Pay Commission)
Financial impact
(Figures in rupees crore)
Pay
244300.0
283400.0
39100.0
Allowances
HRA
12400.0
29600.0
17200.0
Transport Allowance
9900.0
9900.0
0.0
Other Allowance
24300.0
36400.0
12100.0
Pension
142600.0
176300.0
33700.0
Total
433500.0
535600.0
102100.0

FINACLE TRAINING LESSON 9 [COUNTER TRANSACTIONS]

Recap:
In the previous lesson we have learnt about the commonly used office accounts. From today on wards we will start doing transactions. But if you have not read any of the previous lessons, or if you did not understand any of the previous lessons properly, please read them again and come back. Once you understand the previous 8 lessons, coming lessons will be dead easy.
In today’s lesson we will start doing counter transactions. We will make some assumptions. We will assume that we are working in a post office which is newly migrated. Our office Go Live is from today only. With these assumptions we will start doing transactions.

Finding New account number from old account number
This is the first thing we do once our office is migrated to CBS. We need the new account number to do transactions.

Remember, the new account number will be a 10 digit number. For example 3007369729, 30007399689, 3006874668 etc are all new 10 digit account numbers. 

But our old account numbers are not 10 digit numbers. How do we find the new account number?

We can find out the new account number by invoking CNAC. After invoking CNAC the following screen will appear.


In the above image we can observe that, we just have to enter the old account number to find out the new account number.

But this old account number should be entered in the following format. Only when you enter the old account number in the below format, finacle will understand that the account is from your office and belongs to a particular scheme.

The format is
[SOL ID](SCHEME){ACTUAL OLD ACCOUNT NUMBER}

Let’s see some examples.
Old SB account number is 159157 of Secunderabad HPO. The format in which you should enter is 50000300SB159157
Old MIS account is 55689 of T Nagar HO. The format in which you should enter is60001700MIS55689
Old NSC certificate number is 44BG 778955 of Secunderabad HPO. The format in which you should enter the old account number is 50000300NSC44BG778955
To know more about these formats and various steps involved in CNAC transaction please refer to our book Pineapple version 2 and section 12.23

After entering the old account number just press on GO. You will get a screen as below.

The above screen will give you the details about the account. It will show you the new account number (10 Digits), cif ID of the customer (first depositor) and name of the customer (first depositor).

Please check with name available on the passbook and name showing on screen. It must be tallied.

So this is how you get new account number from old account number.
Note: Please download the latest version of Pineapple and keep it with you while reading these lessons. It will be helpful for you to easily understand the steps in the book. You can download it fromhere

Read these lessons and follow the steps in our book Pineapple and nobody can stop you from becoming a finacle expert. Only a little practice is required.

To make you learn fast and better from now on wards I will give you some tasks. Please do these tasks and you start feeling how easy finacle is.

Task 1: Start using CNAC menu to find all new account numbers. Do not search the PDF file which is supplied to you after migration.
We will start our training of counter transactions with the most basic and easiest transactions, so that you get some confidence after doing those transactions.

Deposits and Withdrawals

What are the basic deposit and withdrawal transactions we do in the counter? The answer is simple.
  • SB Deposit
  • SB withdrawal
  • RD deposit
  • PPF deposit and
  • Sukanya Deposit
We will discuss about interest withdrawals later.

So these are the basic deposits and withdrawals which we do in the counter. For deposits and withdrawals the main point you should remember is this 

“For any deposit or withdrawal transaction we will enter only account id and amount and click on submit all other fields are not necessary.”

Just remember the above point. In the deposit or withdrawal screen there will be so many options. All of them are not necessary for all transactions. Only account number and amount are enough. But in some special cases we have enter one or two extra fields. Let’s discuss each of the above deposits and withdrawals and you will get an idea.

SB Deposit

The menu for SB Deposit is CTM. As soon I say SB deposit CTM should come in to your mind. In CTM, C stands for Customized for DOP or CUSTOM. TM stands for Transaction Maintenance. All menu which start with C are specially designed for DOP users. Try to remember these menus. Enter CTM in menu Shortcut field and click on GO (OR enter CTM and press enter on key board). See the image below.


After you enter CTM and press enter, you will get the below screen.

In this screen we can see
Function
Transaction id
Function type
Initiating sol id and
Transaction date.
Let’s see what the meaning of all these fields is
  1. Function: By selecting the appropriate function we tell finacle what we want to do in this screen.
  2. Transaction id: Transaction id is generated after completion of transaction
  3. Function type: In this field we will tell finacle whether we are doing a deposit transaction or a withdrawal transaction.
  4. Initiating sol id: Initiating sol id means where the transaction is being initiated. So that will be our sol id
  5. Transaction date: Transaction date is the date on which the transaction is taking place. So that will be today’s date.

If you forgot what function is, please refer to lesson no 4 once and come back.
So in this screen we will choose
  • Function as ADD
  • Function type as DEPOSIT
  • And click on GO or Press F4 button on key board.
  • You may get doubts that what about other fields. Transaction date and SOL id will be fetched by default. Transaction id is generated after doing the transaction. So we cannot enter it now.
After choosing function as ADD and function type as DEPOSIT and pressing F4 you will get the screen as shown below.


In this screen just enter Account ID and amount and click on Post, your transaction will be completed. Yes it’s that easy!

You may be thinking that what are those other fields are there for. Those are not required for SB deposit transaction. Then why bother about them. Just enter ac id, amount and click on post your transaction will be completed.

But for your curiosity sake I’ll explain all the items on the screen. See the below image.

Item 1: In item 1 we enter account id and amount
Item 2: In item 2 we enter cheque details while doing SB withdrawal by cheque
Item 3: In tem 3 in remarks column we enter some details of transaction if necessary
Item 4: In item 4 we use these fields for making deposit in SB account by reversing transaction from Suspense account. We never use suspense accounts as we need permission of divisional head for using Suspense accounts. So don’t bother about these.
There are some important points to be noted in this screen. Let’s learn about them. See the image below.


In the above screen observe fields which I have highlighted.
After entering account number, press on tab button on keyboard. After pressing tab you can observe that finacle will automatically show the account holder name. Name of the first depositor is shown beside account number along with SOL ID of the account. 

After entering the account number you can press F9 on key board to view the signatures of the account holder.

In the above image also observe another section which I have highlighted. This section shows the basic information of the account. Let’s see what each item means.

A/c status -- this shows the status of the account. Account can either be active or silent. If the status of the account is silent, we cannot do any transactions until the account is revived. Revival of account can be done using CASBAM menu. For detailed procedure about revival of account refer to section 1.10 of pineapple.
  1. Mode of Operation: This shows us the account mode of operation. It means depending on the code displayed on the screen we can know whether account is single/Joint A/Joint B/Minor account.
  2. Pan number will be shown on the screen if pan number is entered while creation of CIF.
  3. Available Balance is the amount available in the account including cheques which are not realized.
  4. Effective available is the amount available in the account which can be withdrawn from the account.
  5. As you can see in this screen we don’t have any fields showing BALANCE AFTER TRANSACTION (BAT) and DATE OF LAST TRANSACTION (DLT).
  6. So if you have the habit of writing BAT and DLT on the voucher you have to view the ledger of the account using HACLI.
So this is all about SB Deposit transaction. 

Fortunately SSA deposit is also done using CTM menu. So we can follow the same procedure for doing SSA deposits also.

In the next lesson we will learn about other deposits and withdrawals. That is all for today. See you again in the next lesson.

Points to remember
Use CNAC for finding new account number from old account number
For deposits and withdrawals just enter account id and amount and click on submit/post.

LTC CLARIFICATION

Central Civil Services (Leave Travel concession) Rules, 1988- Reimbursement of rail fare on LTC in respect of children of 5-12 yrs age group.- Clarification
No. 31011/3/2016-Estt (A.IV)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
Establishment A-IV Desk

North Block, New Delhi-110 001
Dated: April 29, 2016

OFFICE MEMORANDUM
Subject:- Central Civil Services (Leave Travel concession) Rules, 1988- Reimbursement of rail fare on LTC in respect of children of 5-12 yrs age group.- Clarification reg.
As per Railway Board's circular No. 71 of 2015, Ministry of Railways have decided that in case of children above 5 years and under 12 years of age, for whom full berth/seat is sought at the time of reservation, full fare shall be charged. It is mentioned that if berth/seat is not sought for the children of age 5 years and under 12 years of age at the time of reservation, then half of the adult fare shall continue to be charged subject to minimum distance for charge. This would be effective for the travel w.e.f. 10.04.2016.


2. In this regard, several references have been received in this Department from various Ministries/ Departments seeking clarification as to whether the full fare charged by the Railways for reservation of berth for children between 5 years and 12 years shall be reimbursable while availing LTC facility.
3. The matter has been examined in consultation with Department of Expenditure, Ministry of Finance and it has been decided that for the family members of the Government servant, aged between 5 yrs and under 12 yrs, the actual rail fare shall be reimbursed for LTC, as per the choice of rail tickets purchased by the Government servant.