New Delhi: A Cabinet meeting has been convened on Wednesday to take up 7th pay commission committee’s report which will change the remuneration of 47 lakh central government employees and 52 lakh pensioners.
The Pay Commission, in its report in November, had recommended an overall 23.6 per cent increase in salaries and pension of central government employees.
Even though the government did not explicitly specify an amount for Pay Commission provisioning in the Union Budget for 2016-17, it had said that an interim allocation for various ministries was made in the Budget.
If the Pay Commission’s recommendations are accepted, the total expenditure of the government on salaries and pensions is expected to increase by Rs 1.02 lakh crore in a financial year, including Rs 28,450 crore provisioned in the Railway Budget.
If the revised allowances take effect only from, say, September this year, the savings to the exchequer would be to the tune of Rs 11,000 crore. Additionally, if the railway ministry decided to toe the Centres line, the national transporter will save around Rs 3,800 crore.
The salary revision is expected to boost consumption demand and help achieve higher economic growth in FY17.