Pay Commission Updates

7th pay commission award to be delayed

  1. 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.
  2. With a massive financial resource crunch estimated for 2016-17, the govt. is planning to defer the implementation of the 7th Pay Commission award.
  3. The aggregate Budget numbers would be impossible to sustain on the back of the current trend in growth of tax receipts.
  4. According to CAG, the tax receipts are just 50% of the Budget estimates after the first 8 months of the year.
  5. There is also sluggish pace of GDP growth and the almost negative deflator.

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