At present there are 1.4 million (14 lakh) government officers and employees in the country. In addition, 900,000 retired government employees receive pension benefits.
Under the current salary structure, employees get house rent allowance, transport allowance, medical allowance, festival bonus and Pehla Baishakh allowance in addition to their basic salary.
The government should allocate an amount approximately equal to the basic salary expenditure to cover these allowances.
According to Finance Ministry sources, government allocation for salaries and allowances has increased almost four times in the last 15 years.
In more simple words, the allocation of pay and allowances has increased by 275 percent in one and a half decade. The government will need to allocate more than four times the amount spent 15 years ago in the next financial year.
This means that government expenditure on salaries and allowances of public officials and employees is continuously increasing, increasing the pressure on budget management.
In this regard, Zahid Hussain, former chief economist of the World Bank office in Dhaka, told Prothom Alo, “The government is facing a dilemma regarding salary increases for public officials and employees. On the one hand, there is pressure to increase salaries; on the other hand, the government must also consider how it will manage the budget if salaries increase.”