Rs 70000 Crore Allocated For 7th Pay Commission in Budget 2016

Rs 70000 Crore Allocated For 7th Pay Commission in Budget 2016

As much as Rs 70,000 crore has been provisioned in the Union Budget 2016-17 for implementation of Seventh Pay Commission for government employees, a top finance ministry official said.

While the Budget did not provide an explicit overall provision number, the government had said the Seventh Pay Commission hike has been built in as interim allocation for different ministries and Budget numbers were credible.

Implementation of the pay commission report in toto is to cost the government Rs 1.02 lakh crore.

“We have provisioned for around 60-70 per cent of the total burden that was talked about,” the official said adding about Rs 70,000 crore has been provided in the Budget.

“We will wait to see the report of the Committee of Secretaries on the Seventh Pay Commission and decide if we need further allocation,” he said.

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 as also the revised One Rank One Pension (OROP)scheme for Defence services.”

The finance ministry has provisioned for this in the Demands for Grants for individual departments and ministries. It is built into and subsumed into those allocations.

“No one actually knows what will be the actual burden on the exchequer for the implementation of Pay commission recommendation. We have calculated internally and allocated to various ministries and departments accordingly,” the official said.

The government in January set up a high-powered panel headed by Cabinet Secretary P K Sinha to process the recommendations of the seventh Pay Commission which will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

The Empowered Committee of Secretaries will function as a Screening Committee to process the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.

The official further said the finance ministry has fully provided for OROP scheme for defence personnel.
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 3.9 per cent for 2016-17.

However, in Budget Finance Minister Arun Jaitley dispelled doubts and promised to adhere to the fiscal consolidation roadmap and stick to 3.9 per cent deficit target.

PTI

7th Pay Commission – Hike the Basic Minimum pay by 44% – Review the Salaries after every 5 years – Unions

7th Pay Commission – Hike the Basic Minimum pay by 44% – Review the Salaries after every 5 years – Unions

The brewing discontent amongst the central government employees is threatening to create a storm and disrupt the implementation process. The unions are asking around 44% hike on the basic minimum pay and review the salaries every 5 years.

7th Pay Commission – Hike the Basic Minimum pay by 44% – The unions had staged a 3-day agitation earlier in January, and even threatened to strike work for longer period.

Implementing the recommendations of the 7th Central Pay Commission (7th CPC) is not going to be a cakewalk for the government.

The brewing discontent amongst the central government employees is threatening to create a storm and disrupt the implementation process. The unions are asking around 44 percent hike on the basic minimum pay suggested by the 7th Central Pay Commission.

The 7thCPC had recommended the minimum pay at Rs 18,000 and the maximum pay at Rs 250,000, but the employee unions wants the minimum pay to be hikes from Rs 18,000 per month to Rs 26,000–a rise of around 44.4 percent.

The unions also said that the pay panel has recommended the lowest hike in basic pay since independence.

The unions argue that pay scales vary from states to states. They also want the minimum pay to be applied across all the states in the country.

The Central government employees’ unions have not only demanded to increase the minimum pay of central government employees, but also want government to review the salaries of central government employees after every 5 years instead of the current 10 years.

The previous 6th Central Pay Commission had recommended a 20 percent hike, which the government had doubled while implementing it in 2008. However, the present government is on the look out for a way to somehow influence negatively, the already employee negative 7th cpc recommendations.

The unions have upped the ante on salary hike since the government set up empowered committee of secretaries headed by Cabinet Secretary earlier in January to process the recommendations of the 7th CPC.

The unions had staged a 3-day agitation earlier in January, and even threatened to strike work for longer period.

Source: Zee News