New Delhi, Feb 15: The ‘Committee on Allowances’ headed by Finance Secretary Ashok Lavasa, is likely to submit the report on higher allowances to Finance Minister Arun Jaitley on February 20, reports Sen Times. The committee was appointed in July 2016 for 4 months and got an extension until February 22, 2017.
Ashok Lava’s committee had in October last year stated that his team was ready with its report. As per now, the central government employees are paid allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification. In October 2016, Ashok Lavasa had said, “We are ready to submit our report, whenever Finance Minister Arun Jaitley calls up”.
The higher allowance will most probably be announced post-March 8 after the Assembly Elections and it is likely to provide benefit to 48 lakh employees of central government, and will also be fruitful for many pensioners. If the suggestions of the pay commission are approved, then the basic pay will increase along with allowances. The 7th pay commission had suggested for stopping 51 allowances and merging 37 others out of 196 allowances.
The Government had blamed cash crunch for the delay in the announcement of higher allowance. Also, the government leaned on the assembly elections in the 5 states in the delay of higher allowance and had it announced it, then the government would have violated the model code of conduct. It is expected that the higher allowances can be implemented from  April this year, which also marks the beginning of the new financial year. 
The delay in the implementation of higher allowances has caused immense frustration among employees.
The ‘Committee on Allowances’ recommendation will pilot how the different allowances of government employees will be revised. After some altercation, this report might impact the employees of state government.
Employees of central government demanded to implement higher allowance under the 7th pay commission from January 2016, but the government plans to pay it from August 2016.
A section of UP Transport Corporation employees are set to move the court seeking implementation of pending 7th Pay Commission recommendations. The Central Workshop Karamchari Sangh has given a 15-day notice to the government, seeking fulfillment of their demands with immediate effect and will take the legal path is the government fails.