Indian Government and Salaries of Govt Employees

The Government Employees salaries are directly proportional to income of Indian government. As of Today Indian Govt income is roughly 30 Lakh Crores or 30 Sankus (1 Sanku शङ्कु = 1 lakh crores or 10 power 12)

Union Budget for 2020

Indian government employees are around 50 lakhs total roughly. biggest numbers are from 2 divisions

1. Indian Armed Forces - 15 lakhs
2. Indian Railways - 15 lakhs
3. Other Services - 20 lakhs

On Top of that Central Govt PSU staff is around 10 lakhs as of today. Central Govt has also got the burden to pay Pensions to another 50 lakh people, These are the numbers for Union Government, Nearly 1 Crore Staff.

States may add another 50 lakh employees altogether (my assumption, didn’t collect data), Generally states follow on foot steps of center so their salaries are in general on par with central govt employee. The benchmark is generally set by centre. 7th Pay Commission has set a minimum salary of 2.5 lakhs per employee.

So if we talk in corporate terms, Indian government is a mammoth company with 1 crore employees (50 lakh working + 50 lakh retired). Imagine the pains and profits of running such a big company, the reason why we need Maximum Governance and Minimum Government. Hopefully we will reach there in a decade or two. The indian government is a Jumbo, No wonder why politicians spend a hell lot of money to get power and finicancially lucrative posts within this organisation. Anyone can invest and get back their money easily from this mammoth company. Jumbo Government is One of the reason why corruption flourish inside Govt.

Coming to staff salaries if we take an average salary of 6 lakhs (50k monthly) per annum, the salary budget of government goes to 6 lakh crores or 6 Sankus out of 30 Sankus budget, which is equal to 20% of budget. The remaining 80% goes to defence equipment, roads & railways development, interest payments, imports and others capital and operational expenditures.

To get double salary of present numbers the budget also should be doubled, which is in general happens on every 6 to 7 years. So the salaries of staff is directly linked to govt income.

The Govt needs to encourage more factories, more companies and more investments so that it can collect its share of 25% corporate Tax and increase the revenue for the government. The staff of govt should be educated to encourage private investments in country so that they get their 25% share or return on investment from that venture without investing anything. The bureaucratic mindset should be like an MNC and work towards to increase their revenues by attracting more and more investments and collect their pie of 25% from that and increase their salaries year on year.

This mindset shift is required in public, politicians and bureaucrats to get more salaries for Govt Staff. Country should see investments by private and foreign entities are for the mutual benefit of everyone and should encourage this rather than discouraging.

Finally Govt Employees salaries are linked with Govt Revenues, No one can increase salaries drastically without income. To Get or Increase more, the Key is to make more revenues, investments or create more Wealth.