Pay and pension revision recommendations are scheduled to take effect from January 1.

1. To meet fiscal deficit target, the Government should merge the basic pay and dearness allowance (DA) of central government employees in the current year.
2. On other side, Defer implementing any real increases in pay and pensions.
3. This could be done by compensating those who would have to bear the burden of the deferred effect by giving them a more generous award distributed over several years.
4. The Government’s fiscal deficit in 2008-09, the year the Sixth Central Pay Commission award was implemented, doubled to 6 per cent.
5. Currently, Central government pay and allowances account for 1 per cent of the country’s GDP.