Madhya Pradesh: Madhya Pradesh government is exploring a programme to save money by allowing state employees in non-essential ministries to take up to five years of leave with half pay, a government official said. With this, the state expects to save at least 6,000 crores each year.
Some nations, such as the United Kingdom and the United States, have implemented the furlough system, which allows employees to take three years of vacation and receive up to 70% of their monthly income, subject to a cap.
Employees are allowed to work anywhere or establish a business while on paid leave, and they can choose for voluntary retirement following the break.
According to a senior MP finance department official, the programme was created since the state is saddled with a debt of 2.53 lakh crore and revenues have fallen up to 30% as a result of the negative influence of Covid-19 on the economy. ‘We have sent the proposal for the chief minister’s approval,’ the official said.
To deal with the economic effect of Covid-19, state finance minister Jagdish Deoda stated the administration is considering measures to raise revenue while simultaneously cutting the expenditure and the furlough scheme is part of this plan.
Employees in non-essential sectors will be given 3 to 5 years of paid leave, with the option to work elsewhere or establish a business, according to the plan.
‘They will not get any increment and extra allowances during this period. But this leave period will not break their service,’ the official said.
Employees who are the subject of a departmental investigation or who have been suspended are not eligible for the scheme. It also doesn’t apply to vital sectors like home, health, education, and revenue, the officer added.
Furthermore, he said: ‘To address concerns that the programme would have an adverse effect on manpower, the finance department will enable work to be outsourced as and when necessary.’
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Another official stated that as per an internal survey, people earning less than one lakh were enthusiastic about the plan. ‘Especially those who are above 50 years of age and have a few years left in government jobs.’
This isn’t the first time such a strategy has been implemented. A similar programme to cut government spending was announced by then-chief minister Digvijaya Singh in 2002, but it was removed a year later in 2003 when the Bharatiya Janata Party (BJP) came to power. The party then said that the programme was likely to result in job losses.
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