Government to incur additional expenses due to 7th Pay Commission
: Pay and Allowances of Central Government employees will increase one
lakh crore in the current financial year and also projected to increase
further due to recommendations of 7th Pay Commission.
“Salary is a big question for even profit-minded private concerns.
It is therefore not surprising that the employees of service-oriented
Central Government departments are so obsessed about their pays and
allowances. For a few central and state government organizations that
rake in huge profits, salaries and allowances to their employees is no
big issue.”
A report on the spending habits of the middle class was presented in the
Parliament yesterday. According to the report presented by the Minister
of Finance, Arun Jaitley, “the salary given to Central Government
employees in the current financial year will exceed Rs.1 lakh crore.”
The amount is expected to rise further after the implementation of the
recommendations of the 7th Pay Commission. This could lead to a
financial crunch.
According to estimates, there could be an increase of 9.56 percent in
the salary allocation for Central Government employees, to Rs.1 lakh 619
crores. In the Financial Year 2016-17, after the implementations of the
7th Pay Commission’s recommendations, it is very likely to increase to
15.79 percent and touch Rs.1.16 lakh crores. During the Financial Year
2017-18, it will further rise to Rs.1.28 lakh crores. Funds for
pensioners will increase to Rs.88,521 crores this financial year. During
the Financial Year 2016-17, it is expected to be 1.02 lakh crores. By
the Financial Year 2017-18, it would be Rs.1.12 lakh crores.
7th Pay Commission is expected to submit its final report including the
revised pay and pension structure for Central Government employees and
pensioners to the Central Government on in the last week of September.
If everything goes as planned, the 7th Pay Commission recommendations will come into effect from 01.01.2016 onwards.
Meanwhile, there is no doubt in the fact that employees are extremely
curious to find out how much their salaries would increase if the new
Pay Commission recommendations are implemented.