Government salaries cannot match the market; and there are limits to the internal differentiation that will be politically acceptable. But government would be shooting itself in the foot if it did not recognise it is competing with the market, and in certain critical areas more differentiation of salaries will have to be allowed, whether in high-tech research in DRDO or in the case of some independent regulators. Government will also need structural changes. For instance, there is no doubt that the present architecture of Centrally sponsored schemes will have to be replaced by more powers and block grants to states and local government. This will redefine the Centre’s role more towards monitoring and evaluation than in designing schemes. Correspondingly, it will require strengthening the capacities of local government in radically different ways.

The simple point is this: government requires flexibility, retraining, reallocation of tasks, dismantling of certain hierarchies, tailoring recruitment to fit objectives, more flexibility and differentiation, some collectively negotiated commitments to performance in some areas. A pay commission is the right time to have this discussion. But when it comes to reform we never miss an opportunity to miss an opportunity.

The writer is president, Centre for Policy Research pratapbmehta@gmail.com