Pay Commission Updates

Delicate balancing: A spending boost, but an inflationary aftershock likely


On the fiscal front, experts feel that a burden of Rs 73,000 crore in FY17 may not pose a major problem for the Centre.

  1. Market experts say, while on one hand it will provide a big stimulus to the economy in coming years.
  2. On the other hand, it would be inflationary in nature, thus calls for delicate balancing between growth and inflation.
  3. On the fiscal front, experts feel that a burden of Rs 73,000 crore in FY17 may not pose a major problem for the Centre.
  4. Analysts feel that it will lead to rise in consumption and will thus provide boost to the economy.
  5. Crisil pointed out, consumption get boost as states too have implemented wage hikes by a delay of one year and that by perking up household consumption demand.

CPC revisions will facilitate faster improvement in capacity utilisation in the fiscal 2017.

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