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West Bengal Chief Minister Mamata Banerjee has sharply criticized the inefficiency within the state’s Finance Department, particularly concerning delays in processing critical files, including those related to the Dearness Allowance (DA) for government employees. In her remarks, Mamata pointed out the influence of left-leaning officials within the department, claiming that their political discussions were obstructing the department’s ability to function effectively. She stated, “Finance Department has become like Alimuddin Street,” referring to the Left’s historical political base in the state. The comments were made amid ongoing employee protests and legal battles concerning DA arrears.
State government employees in West Bengal have long demanded a substantial DA increase. Currently, employees receive a DA of 14%, which is significantly lower than the 53% DA received by central government employees. This wage disparity has led to sustained protests and strikes by state employees, who have been seeking a DA hike in line with their central government counterparts. The demand has been further fueled by the fact that the state has not implemented any significant DA hikes in recent years, unlike the central government, which has been offering higher DA increments.
The legal battle surrounding DA arrears is rooted in the recommendations of the Fifth Pay Commission, and it has been ongoing for several years. The case, which had previously been heard in the Calcutta High Court, saw the state government lose in multiple rounds. The case is currently being reviewed by the Supreme Court. Employees are demanding an additional 39% increase in DA, which they argue is necessary to bridge the gap between their current DA and the 53% DA received by central government employees. The outcome of the Supreme Court case is critical, as it could determine whether the state government will be required to pay these arrears and implement a significant DA hike.
West Bengal operates under the Sixth Pay Commission, while the central government follows the Seventh Pay Commission. This discrepancy in pay commission structures has contributed to the ongoing disparity in DA rates between state and central government employees. The Sixth Pay Commission in West Bengal was established in 2009, with recommendations implemented in 2010, while the central government’s Seventh Pay Commission was implemented in 2016. The difference in these pay structures has resulted in different rates for DA, with central employees seeing higher increases.
The Finance Department plays a key role in addressing the grievances of state employees, and its handling of the DA issue has been under scrutiny. Mamata Banerjee’s remarks about the department's inefficiency underscore the growing frustration with the slow pace of resolving the DA matter. In addition to the DA issue, employees have raised concerns about delays in other financial matters, which they argue are exacerbated by political interference. As the case continues in the Supreme Court, its resolution could have significant implications for both the financial well-being of state employees and the political landscape in West Bengal.