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7th Pay commission grants Rs 1.03 lakh crore passed in parliament

New Delhi: The Parliament on Thursday gave its assent to the government’s demand for additional spending of Rs 1.03 lakh crore through supplementary demands for 7th Pay commission grants.

"Pay commission has put a burden of Rs 1.03 lakh crore," Finance minister Arun Jaitley said.
“Pay commission has put a burden of Rs 1.03 lakh crore,” Finance minister Arun Jaitley said.

“The Union government needs funds. Pay commission has put a burden of Rs 1.03 lakh crore,” Finance minister Arun Jaitley said.

Around Rs 70,000 crore was already provisioned in the Union Budget 2016-17 for the implementation of the Seventh Pay Commission for central government employees.

The Budget document states that “the implementation of the Seventh Pay Commission due from January 1, 2016 is to be implemented during 2016-17 fiscal.

Faced with the burden of Pay Commission recommendations, there were concerns on whether the government would be able to stick to the fiscal deficit target of 3.5 per cent for 2016-17.

Jaitley expressed hope on Thurday that government is going to meet its fiscal deficit target for the current fiscal given the buoyancy in the tax collection. He also said India will continue to be the fastest growing major economy.

The govermment already estimated that the total burden on the exchequer on account of the 7th Pay Commission recommendation would be Rs 1.02 lakh crore in 2016-17. There will be an additional impact of Rs 12,133 crore on arrears and of salary and pension for two months of 2015-16.

The Government has decided to pay its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. Accordingly, Finance Ministry issued Office Memorandum No.1-5/2016-IC on July 29.

The government has already issued  notification and resolution  for 2.57-time hike in basic salary of one crore central government employees and pensioners as per the 7th Pay Commission recommendations.

TST

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