A case for scrapping common General Holidays

The Government of Andhra Pradesh has notified 23 General Holidays for 2007. Of these, 18 are in commemoration of some religious event. The remaining five are secular holidays, including the Republic Day and Independence Day. At the risk of being "politically incorrect", I will stick out my neck and claim that this means, there is varying utility associated with 18 of the 23 holidays.

It is only too evident that a person belonging to one religious group should attach much greater utility to a public holiday commemorating a festival of his religion, than a person belonging to another religious group. Further, some individuals may attach more importance and utility to one particular festival, as against another one of the same religion. An individual who may have been willing to work on a General Holiday, is now forced to sit at home, and spend his valuable holiday in the most unproductive manner. It therefore becomes clear that common General Holidays are an economically inefficient outcome. It leaves everybody unsatisfied.

What could be a more economically efficient outcome? The Government could notify all the important religious festivals and credit the same number of General Holidays into the account of each employee. The employees could then be given the option of availing the General Holidays in any combination, along with any of the notified religious festivals. Thus one employee could take his 18 General Holidays in say, three blocks associated with three festivals. This would restrict the holidays to the festival seasons, when in any case large scale absenteeism is common. Further, if these holidays are utilised only during the festivals and not spaced out across the year, we can limit any disruption at the work place. Also, by notifying these festivals as General Holidays, the Government will be able to satisy any socio-political compulsions.

The most efficient outcome would of course be to do away with all religious holidays and add the number of General Holidays to the Casual Leave Register of individual employees, thereby giving them the full flexibility to avail them.