Central government employees are likely to get their revised salaries
based on the recommendations made by the 7th Central Pay Commission
(CPC) by August this year.
A decision is expected to be taken on June 11 when the empowered
committee headed by cabinet secretary P K Sinha meets to discuss the
subject.
"Central government employees could get the revised pay scales with
their July salaries that would be credited on Aug. 1," the Financial
Express quoted finance ministry sources as saying.
The commission had suggested an average hike of 23.5 percent in pay and
allowances for about 47 lakh central government employees and 52 lakh
pensioners with retrospective effect from January this year.
The Narendra Modi government allocated Rs. 70,000 crore in this year's
budget for implementing the proposals, the full-year impact of which has
been estimated at about Rs. 1.02 lakh crore in 2016-17.
The implementation of the 7th CPC recommendations is being seen as a
double-edged sword. While consumption is expected to get a fillip and in
turn spur growth, the government's finances are bound to come under
strain with the full implementation, leaving less money in its hands to
spend on infrastructure.
In its latest monetary policy statement released on Tuesday, the Reserve
Bank of India (RBI) had listed the 7th CPC recommendations as one of
the three risks for inflation.
"...there are upside risks – firming international commodity prices,
particularly of crude oil; the implementation of the 7th Central Pay
Commission awards which will have to be factored into projections as
soon as clarity on implementation emerges; the upturn in inflation
expectations of households and of corporates; and the stickiness in
inflation excluding food and fuel," it said.
Source : http://www.ibtimes.co.in/
