Published On: Mon, Nov 23rd, 2015

Govt to implement pay commission recommendations soon with slight changes

New Delhi: The central government is in the process of making slight changes in the Seventh pay commission report, which will be implemented from January 1 next year.

Arun Jaitley

Finance Minister Arun Jaitley said that the final decisions on the Seventh Pay Commission report took five and a half months.

Finance Minister Arun Jaitley while introducing the Seventh Pay Commission report on Thursday said the report will be studied by a secretariat headed by Expenditure Secretary before government takes a decision.

Introducing the Commission report to the media, he also said that after Expenditure Secretary’s review, the secretarial committee headed by cabinet secretary would discuss on it and then it would be placed for the cabinet nod.

The final decisions on the Seventh Pay Commission report took five and a half months, he added.

The Expenditure Secretary and secretarial committee are expected to bring slight changes in the commission’s recommendations on account of curbs on government expenditure.

The ruling party, Bharatiya Janata Party (BJP) is also ready to allow the implementation of recommendations the Seventh pay commission.

The party leader Siddharth Nath Singh told ANI, ” It’s a welcome step and 24% hike will be given to the central government employees and pensioner and this has happened because of the strong leadership of Prime Minister Modi and Arun Jaitley. We know 18 months ago the economic condition of this nation was extremely poor and they have brought it back to track.”

He added that it because of the combined leadership of the two that the country was in a position to spend more than one lakh crores by giving a hike of 24 percent to the pensioners and central government employees.

The Finance Ministry Friday expressed confidence that the fiscal deficit targets will not be breached because of absorbing the Rs 1.02 lakh crore bill in respect of implementation of recommendations the Seventh pay commission.

“The Seventh pay commission report was expected. Now the content of the report obviously the government was not aware. But government always has broad estimation of what is going to be the impact of a new pay commission recommendation and accordingly internally a kind of risk matrix is prepared,” Economic Affairs Secretary Shaktikanta Das said.

Most of the expenditure because of implementation of the report would come in next financial year, 2016-17, he added.

“So, government will deal with the situation. We will work out our numbers. So far as fiscal consolidation roadmap, fiscal roadmap is concerned, that will be maintained,” he told CNBC TV18.

Under above circumstances, it is expected, the Central government will implement the recommendations of the Seventh Pay Commission with some modifications in April after fund allocation in budget 2016-17, which will be possible a poll sop of pre-election “special packages” for Assam, Kerala, Tamil Nadu, West Bengal and Puducherry, which are all due for polls by May 2016.


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