The 7th Pay Commission award would bring a sense of relief among the central government employees, but it would be a challenge for the government to contain country’s inflation, economists observed.
Top economist in Modi government familiar with the matter told The Sen Times on Friday asking not be named, that the 7th Pay Commission would speed up country’s economy and bring about a positive change in the lives of government employees. Their purchase capacity would increase and so, businessmen would have its advantages at different level.
“There is no demerit of salary hike, but some people would try to take immoral advantages of the situation. It has to be stopped,” he noted.
He also told us that it is necessary to hike up the salary of government employees as the 6th Pay Commission has been implemented since January, 2006.
However, he does not think that the 7th Pay Commission award would shoot up inflation in the country.
The government should have to be careful against the unscrupulous quarter who might try to take immoral advantages of the 7th Pay Commission award, he also said.
Finance Minister Arun Jaitley when presented the Economic Survey in parliament said that the recommendations of 7th Pay Commission would not impact market price volatility.
The officials of Prime Minister Office (PMO) also said the government will execute the new pay scale for the central government employees soon.
“The 7th Pay Commission award was supposed to be executed from the month July. It’s almost ready and government’ll do it,”said the senior officials of the Prime Minister’s Office (PMO).
The senior officials of the Prime Minister’s Office (PMO) also said, the government will give the better pay package of its employees than 7th Pay Commission recommendations.
“The salary and allowance hike for the central government employees on the proposal of the Secretaries group would not be nominal but a handsome one,” they added.
The 7th Pay Commission headed by Justice A K Mathur proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions. The increase in allowances was recommended 63% while pension was proposed to rise 24%.
The previous Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.
A 13 members secretary-level Empowered Committee or Secretaries group, led by cabinet Secretary P K Sinha was formed in January to review the recommendations of 7th Pay Commission before cabinet nod and the Secretaries group is likely to finalize its work.
The new pay scales will be effective from January 1 for all central government employees.