The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of almost 50 lakh central government employees and 58 lakh pensioners.
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Ind-Ra says it believes that after the sharing of central taxes with the state governments, the central government’s net tax revenue will increase by Rs14,100 crore or around 0.09% of GDP in FY17.
Together with arrears payable from January 1, 2016, the additional burden for the government will be Rs 60,608 crore in the current financial year. Thus the net impact on the central government finances is estimated to be Rs 80,641 crore or 0.54 per cent of GDP. Cabinet Government Employees Group Insurance Scheme (Sijiijiais) and the huge increase in monthly contributions Refusing chose to recommend, as was recommended by the Commission. 10.
Earlier, dubbing the Seventh Pay Commission as “disappointing”, the Congress said that it was the worst pay hike in the history of independent India. Arun Jaitley announced that the newly recommended revised pay of the Govt. employees based on the 7th pay commission report will benefit 47 lakhs existing Govt. employees, 52 lakhs pensioners. Therefore, all government servants would receive six months’ arrears. “This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement”, explained Justice Mathur. Meanwhile, the overall effect of the pay commission implementation has always been positive as per country’s past experiences.
Undoubtedly, hike in the salaries of the government staff is a welcome move; nevertheless, there is no such commission for the bulk of labour force that is engaged in the unorganized sector, which is in a miserable plight.
Experts believe the extra money in the pockets of consumers is expected to provide an immediate boost to consumption demand in the economy and market.
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“If we implement the 7th Pay Commission for government employees, we will have to shell out Rs 6000 more per year on their salaries”.
