Pay Commission suggests 40 percent hike for bureaucrats

March 24th, 2008 - 2:53 pm ICT by admin  

New Delhi, March 24 (IANS) An estimated four million employees of the central government will get up to 40 percent hike with effect from Jan 1, 2006, if the recommendations of the Sixth Pay Commission submitted Monday is accepted. According to officials, the commission has recommended higher allowances in areas like house rent and travel allowance, besides hefty benefits for those in defence and paramilitary forces.

The report of the commission headed by Justice B.N. Srikrishna was presented to Finance Minister P. Chidamabaram here.

“The report will now be presented before the union cabinet for appropriate action,” a spokesperson for the finance ministry said.

For the government, the recommendations come at a time when the finance ministry had announced a whopping Rs.600 billion ($15 billion) programme to waive loans taken by farmers, which is to be funded in cash from the national exchequer.

“I have left headroom for myself,” the finance minister said after presenting the budget Feb 29, when asked how he intended to finance the recommendations of the Pay Commission.

His reference was to a low fiscal deficit constituting 2.5 percent of India’s gross domestic product that could allow the government to borrow money to finance the pay hikes.

“If my additional revenues are buoyant that will pay for the increment, failing which I will fall back upon the headroom I have left for myself,” Chidambaram had said.

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