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Govt officials’ income erodes 16pc in a year


Posted on Thursday, May 10th, 2007 at 3:48 am
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Inflation has gnawed away 15.8 percent of the income in real terms of the government officials since 2005 when the last salary adjustment took place, a Centre for Policy Dialogue (CPD) study showed.

And the worse thing is the present inflation scenario suggests that inflation, particularly food inflation, is not going to come down much in the near future.

“This can seriously affect the poorer section of the population, especially those in the rural areas,” the CPD said. “The people with fixed income are also adversely affected.”

Against this backdrop, the CPD has also suggested to the government a 5-15 percent increase in salary of the government officials in phases.

The CPD submitted its suggestions to the chief adviser of the caretaker government Tuesday in a report after it was tasked to study the reasons for price increases of essentials.

In its coping suggestions with inflation, the think-tank has suggested a double pronged strategy — increasing salary for the urban fixed income group who had erosion of income both for costly essentials and recent drive on corruption, and stronger safety net programme for the rural poor.

“Social safety net programmes such as Food for Work should be expanded to support the worst affected parties due to this price spiral,” the report said.

IN FY07, 1,057,000 MT food grains including 849,000 MT rice and 208,000 MT wheat was proposed to be distributed under the non-monetised food distribution programmes. The CPD has suggested that these programmes should be increased significantly in the next budget.

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This entry was posted on Thursday, May 10th, 2007 at 3:48 am and is filed under Bangla, Bangladesh, Bangladesh Economy, Bangladesh News, Daily Bangladesh News, Economy, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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