FM speaks on Implementation of 7th Pay Commission report in
Parliament and tables Medium Term Expenditure Frame Work Statement –
Central Government Employees Salary Expenditure to cross Rs. 1 lakh
Crore.
Central government’s salary expenditure will
exceed Rs 1 lakh crore in the current fiscal and is projected to
increase further with the recommendations of 7th Pay Commission, posing
risk to public finances, Finance Ministry said today.
According to
the Medium-Term Expenditure Framework Statement tabled in Parliament,
the salary outgo of central government employees will go up by 9.56 per
cent to Rs 1,00,619 crore in current fiscal.
The pace will
increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with
the likely implementation of the 7th Pay Commission award, said the
statement tabled by Finance Minister Arun Jaitley in Parliament.\
The outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.
“The award of VII Central Pay Commission (CPC) and its impact on government finances poses a risk,” said the statement.
It
also raised concerns about the rising pension bill of government
employees saying it will rise to Rs 88,521 crore in current fiscal. It
has been pegged at over Rs 1.02 lakh crore in 2016-17, and over Rs 1.12
lakh crore in 2017-18.
“Like in salaries, higher than normative
growth has been provided for the projection of outlay on pensions during
2016-17. For the second year of the projection (2017-18), a normative
growth has been assumed. Award of VII CPC and its impact on Government
finances poses a risk,” it added.
The recommendations of the 7th
Pay Commission, which was set up by in February 2014, is likely to be
implemented from January 1, next year.