- The delay in 7th pay commission award would allow to keep fiscal deficit close to the targeted 3.9% and 3.5% of GDP for this financial year and the next respectively.
- With a massive financial resource crunch estimated for 2016-17, the govt. is planning to defer the implementation of the 7th Pay Commission award.
- The aggregate Budget numbers would be impossible to sustain on the back of the current trend in growth of tax receipts.
- According to CAG, the tax receipts are just 50% of the Budget estimates after the first 8 months of the year.
- There is also sluggish pace of GDP growth and the almost negative deflator.
Posted on | Business Stan