7th pay panel, OROP won't hurt govt's finances: Jayant Sinha - Kalviseithi - No:1 Educational website in Tamilnadu

Oct 23, 2015

7th pay panel, OROP won't hurt govt's finances: Jayant Sinha

Minister of State for Finance Jayant Sinha said on Monday that the government's fiscal position will not be impacted by the implementation of One Rank One Pension (OROP) and Seventh Pay Commission recommendations.

The implementation of OROP is expected to cost around Rs 8,000-10,000 crore for the government in the current fiscal while the recommendations of the Seventh Pay Commission are expected to increase the government's salary expenditure of over Rs 1 lakh crore projected for this fiscal year."I think we are in a very good shape as far as fiscal management is concerned. That was appreciated by all economists," PTI quoted Sinha, as saying.

Sinha, who also attended a meeting of economists chaired by Finance Minister Arun Jaitley at NITI Aayog, said that the government's fiscal situation is robust enough to weather the impact from the implementation of the OROP and the Pay Commission recommendations on salary hikes of Central government employees.However, analysts expect the implementation of OROP scheme for ex-servicemen willcost the Modi government much more than the estimatedfigure of about Rs 10,000 crore."We estimate the overall cost to be Rs 16,000 crore or 0.1 per cent of GDP in FY16... The existing defense pension bill will go up by Rs 10,000 crore, while arrears totalling Rs 12,000 crore will be paid out over two years," Pranjul Bhandari, chief India economist of HSBC Global Research, had said last month.Besides, the Seventh Pay Commission, headed by Justice AK Mathur, is expected to recommend a 40%hike in salaries, according to an analyst at global financial services firm Credit Suisse.

The Central government's salary bill is projected to rise by 9.56% to Rs 1,00,619 crore in FY16 and the implementation of the 7th Pay Commission recommendations is expectedto lead to a further rise in government expenditure.Earlier this month, the Union finance ministry had said that the Pay Commission would beaware of the government's fiscal issues while making recommendations on salary hike to about 48 lakh Central government employees and 55 lakh pensioners.

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வாசகர்களின் கருத்து சுதந்திரத்தை வரவேற்கும் இந்தப்பகுதியை ஆரோக்கியமாக பயன்படுத்திக் கொள்ள அன்புடன் வேண்டுகிறோம்.

1. இங்கு பதிவாகும் கருத்துக்கள் வாசகர்களின் சொந்த கருத்துக்களே. கல்விச்செய்தி இதற்கு எவ்வகையிலும் பொறுப்பல்ல.
2. கருத்தை நிராகரிக்கவோ, குறைக்கவோ, தணிக்கை செய்யவோ கல்விச்செய்தி குழுவுக்கு முழு உரிமை உண்டு.
3. தனிமனித தாக்குதல்கள், நாகரிகமற்ற வார்த்தைகள், படைப்புக்கு பொருத்தமில்லாத கருத்துகள் நீக்கப்படும்.
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-அன்புடன் கல்விச்செய்தி