Source: Khabrein.info
Contrary to widespread misperception that 6th Pay Commission will
have adverse impact on India’s economy, a report says that it wouldn’t
have any negative impact. The report comes at a time when many
economists and analysts both with India and abroad had said that it
will be increase deficit and may aggravate inflation.
Central government that is all set to issue notification for the
implementation of the pay panel recommendations must have heaved a sigh
of relief over the finding of Fitch Ratings India.
The Fitch Ratings India’s finding totally negates the economists who
had been ranting that it will be counter productive for the nation and
that it will be very difficult for the country to absorb the financial
impact of the increased pending on the pay panel implementation.
Around 5.5 million central government employees are going to benefit
from the pay panel recommendations. A larger number of state government
employees too will benefit from the recommendations if their respective
state governments implement the recommendations.
It is estimated that the wage hike would increase the financial
implication for the Centre by Rs 17,798 crore annually and the arrears
with effect from January 2006 would cost Rs 29,373 crore, Information
and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet
meeting. The financial implication of Pay Commission on the General
Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in
2008-09. The government’s present salary bill is over Rs 70,000 crore
and the pension bill is over Rs 30,000 crore.
Dr Devendra K. Pant of Fitch Ratings India says, “In 1997, the fiscal
situation was grimmer for Indian states when increased expenditure on
wages and salaries resulted in increased borrowing, engulfing some
states in a fiscal crisis and trapping them in a vicious cycle of debt”.
Contrary to widespread misperception that 6th Pay Commission will
have adverse impact on India’s economy, a report says that it wouldn’t
have any negative impact. The report comes at a time when many
economists and analysts both with India and abroad had said that it
will be increase deficit and may aggravate inflation.
Central government that is all set to issue notification for the
implementation of the pay panel recommendations must have heaved a sigh
of relief over the finding of Fitch Ratings India.
The Fitch Ratings India’s finding totally negates the economists who
had been ranting that it will be counter productive for the nation and
that it will be very difficult for the country to absorb the financial
impact of the increased pending on the pay panel implementation.
Around 5.5 million central government employees are going to benefit
from the pay panel recommendations. A larger number of state government
employees too will benefit from the recommendations if their respective
state governments implement the recommendations.
It is estimated that the wage hike would increase the financial
implication for the Centre by Rs 17,798 crore annually and the arrears
with effect from January 2006 would cost Rs 29,373 crore, Information
and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet
meeting. The financial implication of Pay Commission on the General
Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in
2008-09. The government’s present salary bill is over Rs 70,000 crore
and the pension bill is over Rs 30,000 crore.
Dr Devendra K. Pant of Fitch Ratings India says, “In 1997, the fiscal
situation was grimmer for Indian states when increased expenditure on
wages and salaries resulted in increased borrowing, engulfing some
states in a fiscal crisis and trapping them in a vicious cycle of debt”.
0 comments
Post a Comment