Rejoinder to Chetan Bhagat on OROP

This is in response to Chetan Bhagat's article on OROP published by Dainik Bhaskar on 19 September and ToI on 20 September 15.

In September 2011 Renuka Sane and Ajay Shah  wrote a paper on Pensions on the portal of National Institute for Public Finance and Policy. This paper has a distinctly anti-military flavor. Hence I have taken data from this paper to refute or reply each of Chetan Bhagat's suppositions or assertions. So here we go!

Civil servant till 2004 were covered under defined benefit pension scheme. These employees, in normal course, would start retiring only in 2036. Their pensions gobbled up 2.31% of GDP in year 2004-05. They have far liberal terms of service. Each of these civilian employee is eligible for pension after 10 years service and get full pension after 33 years service. Their pension is computed at 50% of average of last 10 month salary and 40% commutation is allowed, which is restored after 15 years. Budget for 2009-10 projected outgo for 3.5 million central government civilian pensioners at Rs. 484 billion or $10billion which equals 1% of GDP. Add 1003.5 billion for State Government pensioners. Total comes to 2.5% of GDP. Most importantly they are coveredby Equal Opportunities Act which safeguards their employment even if they suffer from a disease which leaves them bed-ridden.

Military pensioner are also covered by defined benefit pension scheme cost which cost .3% of GDP (one-third of central government civilian pensioners) in year 2010-11. By the way out of total 2.2 million defence pensioners .5 million are civilians paid out of defence estimates and 1.72 million are veterans. Soldier are eligible for pension after 15 years service and get full pension after 33 years service. Pension for a soldier, just like civilian, is computed at 50% of average of last 10 months salary. 45% commutation allowed, which is restored after 15 years. Budget for current year shows outgo of Rs. 540 billion on 2.2 million defence pensioners. The civilians, as brought out earlier, numbering .5 million will take away 220 billion from defence pension. Thus in reality 1.72 million veterans were to get Rs. 320 billion as pension in current year, which will rise to Rs. 400 Billion if OROP is implemented. By the way where did you get figure of additional Rs. 120 billion for OROP?

So , my friend the following can be deduced:-
A. Civilian government employee becomes eligible for pension on completing 10 years service compared to a soldier who can get pension only after 15 years of service.
B. 90% of soldiers are compulsorily retired at the age of 37 - 42 years compared to civilian employees who retire at 60 years of age, thereby serving 23 - 18 years more. This results in civilian employee earning three times more.
C. Because of early retirement the soldiers retire at lower end of pay bracket and thus earn less pension, while on the other hand civilian employees retire at higher end of their pay scale and thereby earn maximum possible pension.
D. Civilian employees get full protection of Equal Opportunities Act which allows even bed-ridden employee to remain in service, the soldiers are thrown out for lesser medical infirmities without pension too (if they have not reached pensionable service).
E. Because of early retirement stipulation  a soldier can at best get one Assured Career Progression, that is he will become a Naik on the other hand a constable in CRPF/BSF will get three Assured Career progression and retire in pay scale of Assistant Sub Inspector. 
F. Simple mathematic will show that per capita outgo on a civilian pensioner paid out of defence estimates is Rs.440000/- Per annum, while it is Rs. 186040/- on a soldier.
G. While I am unable get true figure for central government civilian pensioners, it is said their ratio to serving is .7:1, that is .7 pensioner for each employee. Hence safe to presume that their number would be 2.4 million. And if extrapolate figures of 2004 which Renuka and Ajay have cited then 1% of GDP now would be Rs. 970 billion, which would be the figure for civilian pensions now. Implying that per capita pension of civilian pensioner is Rs. 500000/- per annum. After adjusting for error of data, it can be safely taken as same as that of civilian pensioner paid out of defence estimates (refer F above). 

Apparently a civilian pensioner on average is drawing 2.3 times ore pension than a soldier because of reasons explained in B and C above.

By the way I have not even mentioned that soldiering is the Only Unique Profession, wherein the employee, that is, soldier takes on to perform his duty onto death. Shouldn't you like to put a logic figure on this commitment too!
Thank you for patient reading. Now I look forward to a logical reply.
Best regards
Yogi

Sent from my iPad

Shenanigans of Politico-Bureaucratic Combine in Ministry of DefenceIndia

Here is a letter written by a retired Army Officer's wife to Defence Minister of India. She raises some very pertinent issues, which I do hope that Mr. Parrikar would like to answer!

Mrs Kanta Singh C/O Smt. Shakuntala Devi,

V.PO Bhadani, Dist. Jhajjar,

Haryana - 124104

Shri Manohar Parrikar,

Minister of Defence, Government of India

Delhi - 110011

Respected Shri Parrikarji,

The Indian youth join Army for many reasons. Some are romantics filled with patriotism and altruistic concern for the welfare of country. Some are looking for a job to support their poverty ridden family and some just blunder in. But they serve unto death for a higher reason, that is, `Guardian Attitude’. The Guardian Attitude is generated through a regime of tough training and strict discipline and strengthened by camaraderie between soldiers and officers and shared sense of glorious past which are hallmark of Military. 

Very idea of Guardianship has to be rooted in the concepts of honour, higher purpose, and belief that the soldier-citizen is a standard bearer, who embodies the superior virtues of men’ but are loath to self-publicise. Consequently `the military elite, like other leadership groups is inhibited in proclaiming its special virtues’. Resultantly Indian military leader ship has, perceptibly not, been able to match up the shenanigans of a bureaucracy steeped in traditions of Delhi Durbar and unable to safeguard organisational interests of the military. This leaves elected leaders with responsibility to ensure that fiscal pedantry and bureaucratic skulduggery do not kill Guardian Attitude of military by depriving or stealing the special affections showered on it by a grateful society through special pay and perks given to soldiers and officers.

Examples which highlight progressive degradation of military since 1947, denial of fair wages and reduction in pension and recent recommendation for mass punishment by 7th CPC on military because some senior officers allegedly abused provisions of disability pension are matters of history and enough is available in public domain hence not repeated here. However I am keen to know your response to the following issues:-

• One hears a common refrain from `interested’ elements, especially bureaucracy that Armed Forces are manpower happy. But it would come as surprise to you that while three services spend 37 per cent of their budget on `Revenue’ account while the figure for `Revenue’ expenditure of Civil Wing is massive 63 per cent! Do you have any plans to review the `Outcomes’ from this huge expenditure?  

• As per Report of 7th CPC the MoD has sanctioned posts of 5,85,000 civilians, which is nearly half the strength of three Services. In view of increased mechanisation and IT enabled offices has a review of their efficacy and efficient been undertaken with a view to right-size it?

• Civil element of the MoD has higher ratio of Group A services at 4 per cent and Group B at 15 percent as against the Army, which has 3.79 per cent officer and 12 percent JCOs against 86 per cent Other Rank. Resultantly not only less hands are available for actual work on site by average expenditure on a civilian employee of MoD is higher.

• Please glance at page 28 of 7th CPC report and you will find that MoD grossly understated expenditure on its civilian staff. It will be worthwhile to know whether it was done intentionally.

• You may also wish to check as to how the MoD is spending more than Rs. 1000 Crore per annum on pay, allowances and establishment of Ministry of Finance personnel! Do you genuinely need such a large number of finance guys to manage MoD budget or is it a case of freeloading at the cost of soldiers?    

• No wonder MoD spent Rs. 1883 on itself Crores in last fiscal (Refer demand No. 21 of Union Budget 2015-16). This amount is more than combined total budget of MHA, MHRD, MEA and a few other ministries combined. Do you plan to undertake any measure to reduce this expenditure?

• There are 62 Cantonments in India. Each of these has a CEO and DEO. These two IDES officials, who are equal to Major/ Colonel, occupy large lavishly appointed bunglows which are maintained by a retinue of staff! Do you have any plans to find out as to how are these facilities funded? 

• Military Engineering Service (MES) spends 60 per cent of its budget on Revenue account! Is that fair for an organisation which it only meant to supervise works to spend Rs. 7200 Crores on pay and allowances to supervise works worth Rs. 4800 Crores executed by contractors?

• DRDO, purportedly a `Research’ organisation spends 61 per cent of its budget on revenue account. Thus leaving only 39 per cent for `Research’!

• The Defence Minister and other ministers of MoD are entitled to civilian staff including civilian staff cars and civilian drivers. Do you plan to relieve Army drivers and any other combatants attached to your office to let them perform their primary duties in Army?

• As a CM you must have enjoyed facilities of having a Camp Office at home. Are there any plans to do away with this archaic concept which allows ministers and civil officials to garner staff and other resources like electricity for personal purpose at cost to public exchequer?

• Are there any plans to remove/ reduce MTS and telephone attendants from residences and offices of government officials and ministers of MoD? 

I close with a fervent hope for a reply and positive reaction to issues raised.

​​​​​​Best regards

​​​​​​​​​​​Sincerely

​​​​​​​​​​Kanta Singh

New Enemy - Jats in Haryana

As per Census 2001, against overall national average of 16 percent SC in Haryana form 21 percent of population. Historically United Punjab, of which Haryana formed a part, did not have rabid untouchability of UP and Tamilnadu type. (Ibbetson 1883, repeated 1970:15). Despite the fact that Jats, as landowning majority could and did control the socio-economic structure. This was so because the social measurement scales applicable in United Punjab was not based on puritanical principle of Brahaminical orthodoxy. Rather it was based on landownership and martial strength. 

In such a situation of total domination, which Jats enjoyed, if they have still been comparatively more considerate to their less endowed compatriots then the credit must go to the ethics and traditions which mark Jat society. Traditionally Jat farmer has displayed a hightened sense of  social responsibility towards well being of their villages. Jajmani system, for all its flaws, was the best method of social security prevalent in rural Medieval India. Under Jajmani system Jats took responsibility for sharing their produce with those belonging to SC and BC, who in turn contributed labor during reaping of crops.

During pre-Partition era, United Punjab was one state where the electorate rejected both the Congress and Muslim League and opted for Unionists who placed economic well being ahead of caste or religion. This was result of long lasting harmony which marked relations between agrarian classes (Hindu Jats and Jat Sikh) and Muslim farmers of United Punjab. Even during cataclysmic upheaval of 1947 Harayana was marked by comparative peace. Post partition a large number of displaced Hindus coming from Pakistan made Haryana their home. Till date there has never been case of Jat discrimination against this community called 'Punjabis' and it has flourished and today forms some 20% of total population of Haryana. In fact a large number Found safe heaven in Haryana when they were hounded from Punjab during days of terrorism.

So it is bewildering, at least for a Jat, to see the SC and Punjabis of Haryana range themselves against Jats. As already brought out the Punjabis in Haryana are a successful community with more than their fair share in top end government jobs. Success of SC can be gauged from the fact that today Jat farmer depends on labor from UP and Bihar because SC of Haryana have moved to more paying professions and government jobs. Ahirs, that is Yadavs, have benefited the maximum from urbanization of Gurgaon-Rewari belt besides getting more than their share of government jobs. 

So why do these communities still resent Jats. Real reason is the political power Jats enjoyed by virtue of being largest (27%) segment of Haryana population and this rankled with these comparatively more successful communities!

Having succeeded in business and garnered major share of top end government jobs the Arora/Khatris who form 6% of Haryana population look at themselves as rightful claimant to the crown. Top leadership of Haryana BJP comes from this community with ML Khattar and Anil Vij being prominent faces

Ravidasis who are approximately 5.5% of Haryana population also form the largest segment of SC and have traditionally garnered overwhelming share of SC reservations and thus having gained economic salience are now looking to gain a larger share in political sphere. They look at Ms. Mayavati as their role model.

Ahirs, that is, Yadavs and Bishnois are small in number, being just around 4% and 2% of Haryana of population respectively. However being economically well off they have always sought larger share in government and their leaders have always been in forefront of anti-Jat consolidation, because both Bishnois and Ahirs look at Jats with a certain envy, roots of which lie in past positioning of caste hierarchy.

Sainis by themselves they are politically weak, being less than 3% of Haryana population, but their leader Raj Kumar Saini, who also happens to be a BJP MP is projecting himself as leader of OBCs of Haryana.

So-called upper castes like Rajput (3%), Brahaman (7%) and Banias (7%) who collectively form 17% have been most astute. They have traditionally retained presence in all political parties but have consolidated behind largest non-Jat grouping likely to win. Thereby they have remained part of every political dispensation to have ruled Haryana.

Ultimate aim of all of these communities is to gain political ascendancy and consequently many leaders from these communities and castes have for quite a few years been attempting anti-Jat consolidation. Those seeking proof need only revisit appointments made by non-Jat CMs like the very first one Bhagwat Dayal Sharma and later by Bhajan Lal. However their biggest success came with elections in 2015, when a Pan-Haryana consolidation of non-Jats saw BJP gaining absolute majority with 47 MLAs, of whom only six are Jats.

Not satisfied with electoral success the BJP wanted to create a permanent vote bank of non-Jats in Haryana. To achieve this aim they intentionally lost the case in Supreme Court, for Inclusion of Jats in OBC. Then they started playing a double game wherein on one hand, the top BJP leaders made promises of including Jats in central OBC list while on the other hand local BJP leaders like Raj Kumar Saini launched almost daily diatribe against the Jats and likes of Khattar and Vij stymied all attempts to works out a government sponsored solution.

Divisive politics of BJP was helped in no small measure by myopic Congress, who instead of playing the role of responsible opposition thought of fishing in troubled waters and played an active role in turning an essentially peaceful agitation in a violent upheaval. 

Today Haryana and by extension all the neighboring areas where Jats have a sizable presence are sitting on a communal tinderbox. In hands of shortsighted and greedy leaders it may turn into a permanent cleavage between Jats and non-Jats or if all parties show maturity then the recent upheaval can be used to start afresh to build a more equitable society where a community is not targeted only because it is self-reliant and self-confident and has traditionally carried its own weight.

It is not that Jats of Haryana are without any options. They must remember that only thing binding these large non-Jat communities is their resentment against Jats. But their weakness is mutually exclusive aims, wherein each wants to grab power for itself. So this non-Jat consolidation is doomed because of its inherent contradictions. On the other hand the Jats have a golden opportunity to group with those communities who have traditionally have had fairly good relations with Jats, namely, Tarkhan, Lohar and Nai (6.5%) and Mevs (4%) but have not benefited from reservations which have been cornered by likes of Ravidasis, Yadavs and Sainis. Remember with complete non-Jat consolidation during 2015, the BJP could get 47 seats. If Jats are able to consolidate with BCs like Tarkhans, Lohars, Nais, chhimbas etc and Mevs then with 40% of vote share they have a fairly good chance of winning a simple majority.