The expert committee has recommended that instead of raising the pension age of government employees, those who are interested should be re-employed until the age of 60 after retirement. The committee also recommended that only pre-retirement salaries and other benefits be continued. The recommendation was made by a committee chaired by former chief secretary KA Abraham, who was appointed by the government to submit proposals to resolve the financial crisis.
Raising the pension age from 56 to 60 could save Rs 16,000 crore, the committee said. However, with the extension of four years of service, the pension will increase in proportion to the increase in salary. In view of all this, the committee has come up with an alternative proposal for re-appointment with conditions after retirement.
It is recommended to increase the liquor tax by 50%
- The committee, chaired by KM Abraham, also recommended a 50 percent hike in liquor tax in the state.
- Fees in government hospitals and educational institutions can be increased by 5 percent every year.
- The limit of 44% petrol tax levied by the state government can be revised from 55% to 50% of the diesel tax.
- Charge a fixed amount from the monthly salaries of government employees and pensioners and pay interest. This amount can be used as a COVID fund.
- 2086 crore if fuel tax is increased and Rs. 6452 crore if the liquor tax is increased.
- The fair value of the land can be increased and the stamp duty can be slightly reduced.
- Appoint a committee to study the financial liability of aided educational institutions to the government.