The salary expenditure of Central Government staff to exceed 1 lakh crore rupees

Wednesday, 12 August 2015

7TH PAY PANEL: SALARY EXPENDITURE OF CENTRAL GOVERNMENT STAFF TO EXCEED RS. 1 LAKH CRORE IN FY 2016

12 Aug, 2015, 03.32 PM IST, NEW DELHI: Central government's salary expenditure will exceed 
Rs 1 lakh crore in the current fiscal and is projected to increase further with the recommendations 
of 7th Pay Commission, posing risk to public finances, Finance Ministry said today.

The pace will increase further in 2016-17 at 15.79% to Rs 1.16 lakh crore with the likely

 implementation of the 7th Pay Commission award, FM Arun Jaitley said.

According to the Medium-Term Expenditure Framework Statement tabled in Parliament, the salary 
outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current 
fiscal.

The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation
 of the 7th Pay Commission award, said the statement tabled by Finance Minister Arun Jaitley in Parliament.

The outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.

"The award of VII Central Pay Commission (CPC) and its impact on government finances poses a risk," said the
 statement.

It also raised concerns about the rising pension bill of government employees saying it will rise to Rs 88,521 
crore in current fiscal. It has been pegged at over Rs 1.02 lakh crore in 2016-17, and over Rs 1.12 lakh crore 
in 2017-18.

"Like in salaries, higher than normative growth has been provided for the projection of outlay on pensions 
during 2016-17. For the second year of the projection (2017-18), a normative growth has been assumed. 
Award of VII CPC and its impact on Government finances poses a risk," it added.

The recommendations of the 7th Pay Commission, which was set up by in February 2014, is likely to be 
implemented from January 1, next year. 

Source:- The Economic Times