Bhutan Kuen-Nyam Party (BKP), says to use the revenue from Chhukha Hydropower for the pay raise of the civil servants is not justifiable. BKP says while they support pay raise of the civil servants, Chhukha Hydropower is a state property, and belongs to all the citizens of the country.
The government’s report mentions that the salary raises for the civil servants are expected to be financed through Chhukha Tariffs, tax revenue from vehicle quota system, PIT from salary raise and other cost costing measures.
But BKP believes nothing is clear on the source of the proceeds to come up with additional Nu. 1.799 BN annually to pay for the raise. They said the Second Pay Commission Report, which wasn’t taken into account by the government, in fact, spells out explicitly how the amount for the pay raise is to be mobilized.
The Second Pay Commission Report states, the expenditure savings from capping of civil service would result to a savings of Nu. 189 MN. Capping of in-country travel budget would result in a savings of Nu. 108 MN, pool vehicle withdrawal would save Nu. 409 MN and monetisation of vehicle quota, Nu. 665 MN.
The report also states Nu. 313 MN would come from PIT proceeds and Nu.1.970 MN from Chhukha.
“There is a large variation between the Pay Commission Report versus Government Pay Revision Report.”
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BKP cited the Prime Minister’s pay raise as as example. “The Second Pay Commission Report recommended 91 percent revision for the Prime Minister while the government report revealed 131 percent.”
BKP’s President, Sonam Tobgay, said pay hike was one of the government’s pledges however there is no social justice to the civil servants, corporate and private sector with the Prime Minister and Cabinet Ministers taking a huge raise.
The Party is also urging the government to reconstitute a Third Pay Commission to re-look at the recent pay revision. BKP said majority of the people are not happy with the recent pay raise and that is every reason for it to be re-tabled.
They even say the third Pay Commission should have members from the lower strata of civil service.
The Bhutan Kuen-Nyam Party also expressed reservations on the fuel and vehicle tax. BKP said without any statistics, the policies on taxation are incoherent.
“Why are we paying for such a high fuel tax? Will it reduce traffic congestion? We need to look at the data. Will it reduce import of fossil fuels? Will it correct current account deficit? Will it correct INR and foreign account deficits?” said Sonam Tobgay.
BKP added that the records show high accidents cases and traffic congestion in Thimphu and Phuentshogling. “Why should the rest of the country suffer from high taxation policies?” The BKP President higher taxation policies deprive the ordinary citizens from owning a car.
