Arunachal Pradesh Government has decided to do away with the Central Government pattern of emoluments, Chief Minister Mukut Mithi said. “This did not mean reduction in the wages of the employees, but the State Government would assess each decision on the basis of its affordability”, the Chief Minister said and asked government employees to appreciate the financial constraints faced by the State and not to take the path of 'needless' confrontation.

Economic measures taken in the State had become inevitable as the government could generate only 7 to 8 per cent of its budgetary requirement through tax and non-tax requirements, while the rest of the funds were provided by the Centre in the form of grants or loans, he said. “The plan allocation had been stagnating over the last several years leading to decline in real terms. Coupled with this is the necessity of enforcing fiscal discipline as indicated by the 11th Finance Commission”, Mr. Mithi observed.

“The Centre had withheld more than Rs 75 crore of the revenue gap grant and half of this amount had still not been released pending implementation of fiscal reforms, while the implementation of the Fifth Pay Commission had cost more than Rs 100 crore. Moreover, the Finance Ministry had estimated that approximately 80 per cent of the State's revenue was spent on personnel related expenditure. In this background, the State Government had imposed various measures of economy to locate more funds for development and restrictions had been placed on acquisition of motor vehicles, filling up of non-essential posts and availing of leave travel concession”, the Chief Minister stated.
    
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