DA & CPI UNDER ATTACK

General Secretary of Confederation for Karnataka State Shri P.S.Prasad has written an article on his blog about the Consumer Price Index for the purpose of calculating Dearness allowance to Central Government employees and Pensioners…which is reproduced and given below for your information please:

The Consumer Price Index is the main base for calculation of Dearness Allowance for the Central Government and State Government Employees and also the Industrial and Bank Employees.

The Consumer Price Index (CPI) is calculated using following steps:

a) Market prices are collected for 252 items by the Officials of Department of Statics and Department of Posts. These prices of that item & place are sent to Central processing unit from 78 centres all over India ( which are enclosed for your reference).

b) The all India weights given the each category of items such as food 49.71%, housing 9.77 %, fuel 9.49% , footwear O.68%, transportation 7.5%, Medical 5.31%, Personnel care 2.92 % & Miscellaneous 26.31% total 100% . CPI points are determined using this all India weights and prices of the 252 items. (which are enclosed for your reference).

Now from the angle of Employees point of view following changes in all India weights should be brought.
a) Housing should be given as 15% instead of just 9.77 %.
b) Medical should be increased to 15% from 5.31 %.
c) The Miscellaneous items should be reduced to just 5% instead of 26.31 %

The prices have risen by over 200% in last 61/2 years, whereas the CPI has shown an increase from 115 points in Jan 2006 to 235 points in July 2013 that means an increase of 120 points and the actual DA is only 92%. There is fault in the calculation of CPI itself apart from present DA formula , as undue all India weights is given for some items such as miscellaneous items such as 26% whatever increase in prices of the food, fuel, transportation, housing are nullified by these 26% decrease in prices or marginal increase in miscellaneous items.

The Employees are not getting the right DA and thus they are not compensated by the real increase in prices which are used for daily needs.

A new series for the calculation of the Consumer Price Index is under preparation by the Government of India. For this purpose, Government has set up a Standing Tripartite Committee (STC) to advise the Government on issues pertaining to the Consumer Price Index for Industrial Workers (New Series).

There are two aspects in this move we should be doubly carefull.

1) There is vast difference between the real price increase and CPI thus an Employee is deprived of the real DA.

2) The Government of India is thinking that the CPI is bloated or wrong that has made burden on the financial burden on them hence it wants to reduce its expenditure by modifying the CPI as a result of this what DA we used to get 10% half yearly and this year by 20%, this can be avoided by next year, hence it is seriously considering the aspect of revising the All India weights of many items such as food which is at 59% to 30%. By this the whole CPI increase will be limited to just 8 to 9 points in a year rather than 25 points in a year by this we get only 3 to 4 % DA every six months rather than 10% DA which we are used to get due to high inflation and drastic rise in prices.

Now the statements issued by Government of India officials ie Reserve Bank Governor Shri D.Subbarao & Shri Kaushik Basu, Chief Economic Advisor, Ministry of Finance, which is enclosed indicate this stand. Instead of employees friendly CPI they want a Government of India friendly CPI.

The wages of CG employees are determined by principle of need based minimum wages as per table 2.21 of 6th CPC report where in only a few items are chosen rather than 252 items chosen by CPI.

I request one and all to be serious about this issue otherwise the Employees will suffer in a long run regarding wrong calculation of CPI and DA issue.

Comradely yours

(P.S.Prasad)

General Secretary

9480066620.

Please find enclosures ;

Ministry of Labour and Employment, Government of India has decided to prepare a new series of Consumer Price Index for Industrial Workers.

For this purpose, Government has set up a Standing Tripartite Committee (STC) to advise the Government on issues pertaining to the Consumer Price Index for Industrial Workers (New Series).

The STC will go into details of various parameters that are taken into consideration for updation of the base year such as the weighting diagram. consumption basket, selection of centres, sample size of establishments for price collection etc.

Government has no specific information about the skilled/semi-skilled worker outsourced by the Central Government /State Governments through contractors not being paid as per the CPI.

However, the Contract Labour Act, 1970 inter-alia, contains provisions for payment of wages to these category of workers.

The contract workers are also entitled to receive minimum wages as notified by the appropriate Governments from time to time.

This information was given by Minister of State for Labour & Employment Shri Kodikurinil Suresh in the Lok Sabha today in reply to a written question.

MUMBAI: The new series of consumer price index (CPI) is not enough for a robust statistical analysis of prices, Reserve Bank Governor D Suhharao said on Friday.

He also said the new CPI has an excess focus on food prices, which has a 50% weight. House rents, which account for 10%, are also a cause for concern given doubts over the efficacy of the prices, he added.

“The new CPI has only 19 data points which is not sufficient for a statistically robust analysis,” Subbarao, who demits office on September 5, said while speaking at the Statistics Day conference at the RBI headquarters here.

Dearness allowance link brings retail inflation figures under cloud

SMRITI SETH, ET Bureau Jul 19, 2011. 0347am 1ST.
http:/Iarticles.econom ictimes.indiatim es.com/20 11-07-1 9/news129790925_1 _cpi-iwretail-inflation-wpi-ancl-cpi

NEW DELHI There could be a systemic over-estimation of the retail inflation as measured by the consumer price index for industrial workers, or CPI-1W, as it forms the basis for revision in the dearness allowance of central government employees.

This retail measure of inflation has generally shown a wide divergence with the widely followed wholesale price index (WPI) inflation. “Since the people who collect data for the CPI get their salaries indexed by the same index it actually feeds into some tendency to bloat that,” said Kaushik Basu, Chief Economic Advisor, Ministry of Finance. The CPI-IW is compiled by the Labour Bureau and investigators are employed by state governments – directorate of economics and statistics – to collect the prices.

The index is used to decide the dearness allowance of central government employees, which creates the incentive for bloating up the index. ‘We have found a couple of items that occur in both the WPI and CPI collected by different agencies. We are now tracking these two to see it there is any bias in them. But there are no results as yet,” Basu said. “A team at the ministry of finance is looking at various aspects of inflation, this is one thing we are indeed looking at,” he said. The labour bureau has strongly denied any such possibility and insisted there was no form of manipulation whatsoever.

“Our system is fool proof, there are multiple levels of checks. There is no bias in the data collected,” said an official at the Labour Bureau. Even experts are skeptical of the possibility of such widespread coordination between all those involved in the process. “It may be true and there is an incentive to do that (unfairly bloat the CPI-IW), but one can’t say that without empirical prool “. said Arup Mura, labour and employment professor, IEG.

This needs a nexus, because unless all the officials coordinate it won’t be possible,” added Mitra. The CPI-IW and WPI have shown vastly diverging trends through the years. During 2009, when inflation rate as per the CPI-IW was actually rising above 11%, the WPI inflation rate was falling to negative rates.

Since January 1, 2008 the rate of dearness allowance for central government employees has risen from 12% to 51%, an increase of 39 percentage points. According to a Patnaik, professor, NIPFP, the divergence can be explained by the difference in baskets used for both the indices. She dismissed the collectors’ bias theory, saying, “in a study, we found that the prices for a particular commodity reported under CPI is in line with other sources like the NCDEX, ministry of agriculture data. So evidence doesn’t suggest a bias,” said Patnaik.

CPI—AII India weights -2011

See website:
http://mospi.nic.in/Mospi_New/upload/brochure_n_cpi18_feb11.pdf

Sl. No Sub group/ Item Rural Urban Combined
(Rural+Urban)
FOOD ITEMS
01 Cereals and products 19.08 8.73 14.59
02 Pulses and products 3.25 1.87 2.65
03 Milk and milk products 8.59 6.61 7.73
04 Oils and fats 4.67 2.89 3.90
05 Egg, fish and meat 3.38 2.26 2.89
06 Vegetables 6.57 3.96 5.44
07 Fruits 1.90 1.88 1.89
08 Sugar etc 2.41 1.26 1.91
09 Condiments and spices 2.13 1.16 1.71
10 Non- alcoholic beverages 2.04 2.02 2.03
11 Prepared meals etc 2.57 3.17 2.83
12 Pan, tobacco and Intoxicants 2.73 1.35 2.13
Food, beverages and tobacco 59.31 37.15 49.71
Sl. No Sub group/ Item Rural Urban Combined
(Rural+Urban)
Miscellaneous Items
01 Fuel and light 10.42 8.40 9.49
02 Clothing and bedding 4.60 3.34 4.05
03 Footwear 0.77 0.57 0.68
04 Housing Nil 22.53 9.77
05 Education 2.71 4.18 3.35
06 Medical care 6.72 4.34 5.69
07 Recreation and amusement 1.00 1.99 1.43
08 Transport and communication 5.83 9.84 7.57
09 Personal care and effects 3.05 2.74 2.92
10 Household requisites 4.48 4.30 4.40
06 Miscellaneous 24.91 28.00 26.31

From the above it is quite clear there is no weightage for rural housing &
Miscellaneous weightage is much more than required.
Which is effecting DA calculation.

List of 252 Items

Sl.No ItemCode Desc
1 101011 rice 1 (other than PDS)
2 101012 rice 2 (other than PDS)
3 101021 chira
4 101041 muri / murmura
5 101061 wheat (loose) -other than PDS
6 101062 wheat(loose)- other than PDS
7 101071 wheat atta(other than PDS)
8 101081 maida
9 101091 suji / rawa
10 101121 bread: bakery
11 101141 jowar
12 101151 jowar product (specify)
13 101181 maize
14 101241 ragi
15 101251 ragi product (specify)
16 101261 other cereals (specify)
17 101281 grinding charges18 102011 arhar/ tur
19 102021 gram: split
20 102031 gram: whole
21 102041 moong
22 102061 Urd
23 102101 other pulses (specify)
24 102131 other pulse products(specify)
25 103031 groundnut oil
26 103041 coconut oil (edible)
27 103051 other edible oil(saffola/ sunflower etc.) specify
28 104011 eggs
29 104021 fish (fresh)
30 104022 fish (fresh)
31 104023 fish (dry)
32 104031 goat meat / mutton
33 104041 beef
34 104051 buffalo meat
35 104071 chicken
36 105011 milk (pasteurized)
37 105013 milk (non-pasteurized -cow)
38 105051 curd
39 105061 ghee
40 105091 other milk products (specify)
41 106011 salt
42 106021 turmeric
43 106031 black pepper
44 106041 dry chillies
45 106051 tamarind
46 106061 curry powder
47 106071 oil seeds
48 106081 other spices: like jeera
49 106082 other spices: like dhaniya
50 107011 potato
51 107021 onion
52 107031 radish
53 107041 carrot
54 107061 beet
55 107091 pumpkin
56 107101 gourd
57 107111 bitter gourd
58 107121 cucumber
59 107141 jhinga, torai
60 107181 cabbage61 107191 brinjal
62 107201 ladys finger
63 107211 palak
64 107221 other leafy vegetables (specify)
65 107231 french beans
66 107251 tomato
67 107271 chillis: green
68 107311 lemon
69 107321 garlic
70 107331 ginger
71 107341 other vegetables(specify)
72 108011 banana
73 108031 watermelon
74 108051 coconut
75 108081 orange
76 108091 mausami
77 108111 mango
78 108171 apple
79 108181 grapes
80 108191 other fresh fruits (specify)
81 108201 coconut: copra
82 108211 ground nut
83 109011 sugar
84 109021 gur
85 110011 tea: leaf
86 110021 coffee: powder
87 111011 tea: cups
88 111021 coffee: cups
89 111071 coconut: green (tender)
90 111081 other beverages (specify)
91 111091 biscuits
92 111101 salted refreshments: specify
93 111102 salted refreshments: specify
94 111103 salted refreshments: specify
95 111111 prepared sweets: specify
96 111112 prepared sweets: specify
97 111113 prepared sweets: specify
98 111114 prepared sweets: specify
99 111121 cooked meals
100 111151 pickles
101 111161 sauce
102 111171 jam / jelly
103 111181 other processed food (corn flakes etc) specify
104 112011 pan: leaf
105 112031 supari
106 112071 bidi
107 112081 cigarettes (filtered)
108 112082 cigarettes (non- filtered)
109 112101 leaf tobacco
110 112151 other tobacco products (specify)
111 112201 foreign liquor/refined liquor(Indian made)
112 201021 firewood and chips
113 201031 electricity (std. unit)
114 201041 kerosene (open market)
115 201051 match box
116 201071 LPG cylinder (domestic)
117 201091 candle
118 201101 other fuel (specify)
119 401011 dhoti
120 401021 sari
121 401031 cloth for shirt
122 401032 cloth for pyjama
123 401034 cloth for blouse
124 401041 cloth for coat (woolen)
125 401042 cloth for pant/trousers
126 401061 lungi
127 401071 towel/gamchha
128 401081 vest/banian (gents)
129 401082 brief/underwear (gents)
130 401083 socks (gents)
131 401091 ready-made shirt
132 401092 ready made pant/trousers/jeans
133 401093 ready made skirt/ frock(child 6-10 years)
134 401094 ready made top (ladies)
135 401095 ready made salwar suit
136 401101 sweater/ pullover (gents)
137 401102 sweater/ cardigan (ladies)
138 401121 bed sheet
139 401131 blanket
140 401992 clothing others (specify)
141 401993 mats & matting
142 402011 leather shoes (gents)
143 402012 leather shoes (children)
144 402021 leather sandals/chappals (gents)
145 402022 leather chappals (ladies)
146 402023 leather sandals/chappals (children)
147 402031 rubber/ PVC footwear (gents)
148 402032 rubber/ PVC footwear (ladies)
149 402041 other footwear (sports shoes etc.) specify
150 402990 other leather footwear (specify)
151 501011 pain killer tablet (allopathic)
152 501012 cough syrup: coscopin plus (above 8 years of age)
153 501013 vitamin B complex: tablet
154 501014 anti fever tab. (allopathic)
155 501015 anti biotic tab (allopathic)156 501016 cough syrup (homeopathic)
157 501018 tonic (homeopathic)
158 501019 chavanprash
159 501021 X-ray(chest) Posterior to anterior view
160 501022 ECG
161 501023 lipid profile test
162 501024 blood sugar (fasting & pp) test
163 501031 doctor’s fee (first consultation)
164 501990 hospital/nursing home charges
165 501991 other medical expenses (specify)
166 502011 primary (5th class) mathematics book
167 502012 primary (5th class) science book
168 502013 primary (5th class) local language book
169 502014 secondary (10th class) mathematics book
170 502015 secondary (10th class) social science book
171 502016 secondary (10th class) science book
172 502017 first year (B.A.) economics book
173 502018 first year ( B. Com) accountancy book
174 502019 first year (B.Sc.) mathematics book
175 502021 newspapers: local
176 502022 news paper : national
177 502023 periodicals/magazines
178 502041 copy/ note book
179 502042 register
180 502043 pen
181 502044 pencil
182 502051 tuition fees (fifth class)
183 502052 tuition fees (tenth class)
184 502053 tuition fees (first year graduation)
185 502061 private tutor fee (primary)
186 502062 private tutor fee (secondary)
187 502063 coaching (professional courses fee)
188 502990 other educational expenses (specify)
189 503011 cinema: new release (normal day)
190 503021 foot ball
191 503022 cricket bat (regular size)
192 503023 lawn tennis racket for beginner
193 503024 carrom board194 503025 playing cards
195 503051 hiring charges for CD/DVD video cassettes
196 503061 monthly charges for cable TV connection
197 503071 transistor/satellite radio
198 503081 television
199 503992 other entertainment(specify)
200 504011 telephone charges: same operator
201 504021 mobile phone charges : same operator
202 504022 mobile phone charges : different operators
203 504061 taxi fare
204 504062 auto-rickshaw fare
205 504091 petrol
206 504101 diesel
207 504111 lubricating oil/engine oil
208 504121 school bus/van
209 504141 motor cycle (without accessories)
210 504142 scooter (without accessories) cost on road
211 504151 motor car (without accessories)
212 505051 toilet soap
213 505061 tooth brush (adult)
214 505062 tooth paste
215 505071 telcome powder
216 505072 snow / cream
217 505073 lipstick
218 505074 body lotion
219 505081 hair oil
220 505082 hair dye
221 505083 shampoo
222 505101 shaving blades
223 505102 shaving razor
224 505121 sanitary napkins
225 505131 other toilet articles: (freshener / perfume) specify
226 505141 flower (fresh)
227 506011 electric bulb
228 506012 tube light (without fitting)
229 506041 plastic bucket
230 506051 washing soap / detergent
231 506061 other washing requisite(brush/cleaner etc)
232 506071 agarbati
233 506081 mosquito repellant / insecticides
234 506091 other petty articles (broom etc.) specify
235 506101 domestic servant236 506121 miscellaneous expenses: photocopying charges
237 506122 other consumer services: driver (car)
238 506123 other consumer services: cleaner (car)
239 506124 other consumer services: cobbler(shoe repair)
240 506141 iron almirah
241 506181 gold
242 506201 stainless steel (cooking pot)
243 506202 stainless steel (plate)
244 506301 refrigerator
245 507011 hair cutting charges (gent)
246 507012 hair cutting charges (ladies)
247 507021 washerman / laundry
248 507022 ironing charges
249 507031 tailoring charges for gents pant:
250 507032 tailoring charge for gents shirt:
251 507033 tailoring charges for ladies suit:
252 507034 tailoring charges for blouse:

Source: www.karnatakacoc.blogspot.in

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About CPWD Engineers' Association

It is a great pleasure to inform you that CPWD Engineers Association has launched its Blogging page. Now this page will bring to you latest developments/activities of our Members. All efforts are being made to ensure that this website caters to the requirement of CPWD Engineers so far as their various information through this Association is concerned. In course of time this page would be the most useful source of information and would reduce the gap between the Engineers and this Association. Please must inform to other members too. This page is added for various interesting things, Important News & Activities of Association .

Posted on Wed, Sep 11th, 2013, in What's new. Bookmark the permalink. 3 Comments.

  1. Dear Members,
    Apex is knowing at the door and do you know the first agenda-it is for the very 3rd. upgradation in promotional hierarchy as per recent court judgments. Whereas the very court judgments is for only 2 nd. Upgradation as per hierarchy. Our general secretary never thinks for his deprived members who are still getting only a mare grade pay of Rs. 4600/- and he is only after for those who have already achieved a grade pay of Rs. 6600 and 7600/-. Is it to be called ASSOCIATION? Obviously it should not be told ASSOCIATION, rather it must be told as a selfish group of senior engineers who always think for his own and doing their best for only transfer & posting- they have no botheration for his juniors. How dare our G.S. to fix such a agenda only for 3rd. upgradation? Holding chairs of supreme power for last several successive years in the centre dared him to fix such agenda. He always diverted/modified decision of several Apexes at his sweet will for the interest of his own. He dictorate our association for his own benefit. In this fashion one association cannot sustain unitedly. Now the resentment is at its peak. Particularly the juniors cannot tolerate their seniors any more. Our G.S. is particularly responsible for this current situation and desperately he is continuing the same. Where a number of ad-hoc A.E. are yet to be regularized, our G.S. only initiated court cases for the regularization of Ad-hoc E.E. We should not degrade the meaning of the term “ASSOCIATION”. Our G.S. has already degraded and he has no power to do the same any more. What is the meaning/outcome in writing in the blog pages where one cannot get his answer from the central leadership? Our G.S. has even no time to receive the phone call of his common members. Actually he does not care anybody as if he is the supreme/final authority. I must believe that our G.S. is adamant and must continue his spirit to die this cadre as a whole at the cost of his own senior members/betterment. What appreciable achievement we got under his continued leadership in the centre? Department changed the RR- he does nothing. Department/DoPT bifurcated the cadre- he does nothing. Rarely he writes in the blog because he is supreme in power, whereas in this present scenario he should often apprise his members only regarding ACP/MACP etc. He should not frame so many agenda. Our one and only agenda should be ACP/MACP as per hierarchy upto 2nd. Up gradation so far as per prevailing court judgment. PLEASE REPLY-OUR CADRE IS DIEING..Thanking you…

  2. SIR,
    ALL ASSISTANT ENGINEERS HAVING GRADE PAY RS. 4600 ARE REQUIRED TO CLAIM BENEFIT OF BUNCHING OF PAY AS PER ILLUSTRATION 4A OF RULE 7(i) OF CCS(RP)-2008 DUE TO UP-GRADATION OF PAY SCALE FROM 6500-10500 TO 7450-11500 W.E.F. 01-01-2006 AS PER 6TH CPC AND SIMILAR MATTER DECIDED BY CAT-JAIPUR ON DATED 28-02-2013 VIDE OA NO. 141/2012. KINDLY FIGHT FOR ALL.

    PRAVEEN GOEL, AE(E), DCEC-7, CPWD, N.DELHI

  3. Association should take this very seriously and talk with all the other associations and Unions for a combined efforts to stop this evil design for reducing D.A by reducing CPI

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