Centre, states must prevent the grand theft of the future

Constitution created a mechanism to ensure financial stability. Centre and state govts should act before a fiscal crisis develops in some states

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nances. First, public sector wages have gone out of control in many states. In general, the government employees are paid two to four times the wages in the private sector for the same job, especially at the lower and middle levels. And yet, productivity is lower in government because of job security, time-bound promotions, and lack of accountability. In many states, reckless recruitment is taking place in sectors where there is surplus staff, and other sectors are depleted. School education is a sector where the teacher-student ratio is often 1:20 or better, and yet outcomes are appalling even as more teachers are recruited habitually.

And periodic, generous wage increases are imposing a huge burden on the exchequer. For instance, salaries of government employees in Telangana and Andhra Pradesh are 30-40% higher than the rest of the states and the Union. Rational allocation of human resources in sectors where they are needed, freezing the wages until they are comparable to the national average and the private sector, and making workers productive are urgent steps that are needed.