Seventh Pay Commission, OROP Will Not Impact Fiscal Deficit: Jayant Sinha

-
NEW DELHI: Increase in salary bill due to Seventh Pay Commission and Implementation of One Rank One Pension (OROP) will not strain government’s fiscal position, Minister of State for Finance Jayant Sinha today said.

                                     
Minister of State for Finance Jayant Sinha 

“I think we are in a very good shape as far as fiscal management is concerned. That was appreciated by all economists,” he said while interacting with reporters after a meeting of economists which was chaired by Finance Minister Arun Jaitley at NITI Aayog.

He made it clear that the government’s fiscal position is strong enough to bear the impact of implementation of Seventh Pay Commission and OROP.

The Seventh Pay Commission report in December is expected to recommend a hike in salary of central government employees. OROP is likely to result in an outgo of Rs 8,000-10,000 crore this fiscal.

The pre-Budget meeting discussed various issues, including agriculture productivity, job creation and fiscal expenditure.

“We had some of India’s most eminent economists and commentators there. Obviously, it is very early in the cycle to start the consultation. But we felt that if there were good ideas, we could incorporate them even in this fiscal year. Obviously, for the preparation of the current budget, we could begin the work on that right now,” he said.

“It was very good interaction and we look forward to incorporating much of this for this fiscal year as well as coming fiscal.”

There were several topics that came up, Sinha said, adding that “one very important topic that we spent time on is agriculture and what we could do to increase productivity in agriculture”.

The meeting also dwelt at length on fiscal expenditure and how to ensure fiscal expenditure, particularly public investment, could be as productive as possible.

“Third major area that we spoke about is obviously the financial sector… more credit for agriculture, MSMEs and what could we do further to strengthen our banks. The final area that we also spent time on is how to ensure we are able to create more jobs for young people, whether it is in the manufacturing sector or the service sector,” he said.

NITI Aayog Vice-Chairman Arvind Panagariya, Chief Economic Adviser Arvind Subramanian and Reserve Bank Deputy Governor Urjit Patel were present.

Besides, the meeting was attended by Finance Secretary Ratan P Watal, Economic Affairs Secretary Shaktikanta Das, Revenue Secretary Hasmukh Adhia and Financial Services Secretary Anjuly Chib Duggal.

Economists such as Subir Gokarn, Director of Research at the Brookings Institution India, Ajit Ranade, Chief Economist, Aditya Birla Group, and Rajiv Lall, Vice-Chairman IDFC Ltd, also participated.

TST

Comments

Post a Comment

Popular posts from this blog

7th Central Pay Commission will submit Report on 19.11.2015 at 19:30 hours: Official News

-
Image
In Media, the news spread about the Final Seventh Pay Commission Report Submission on 19th November, 2015 or 20th November, 2015. The Seventh Pay Commission has confirmed that the Final Report of the Seventh Pay Commission will be submitted on 19th November, 2015 at 19:30 hours. The Seventh Pay Commission has make latest updates as under: The Commission has completed its deliberations and will submit the report to the Government of India on 19.11.2015 at 19:30 hours  Earlier, Government of India has appointed the Seventh Central Pay Commission comprising Justice Shri Ashok Kumar Mathur as Chairman, Shri Vivek Rae as full time Member, Dr. Ratin Roy as part time Member and Smt. Meena Agarwal as Secretary, in a resolution dated 28th February, 2014.  The Commission is headquartered in Delhi and has been given 18 months from date of its constitution to make its recommendations. To this end the Commission will set up its team of Officers, Advisers, Institutiona...
Read More »

Seventh Pay Commission May Not Lower Retirement Age

-
New Delhi: The Seventh Pay Commission is not likely to take a major decision of the lowering of the retirement age for central government employees to 58 years old, two years earlier than what the present law requires. Since studies show that Indian people reaching the age of 50 years old tend to suffer from a decline of cognitive and physical abilities. That older employees also find it harder to adapt to modern technology, which is must required to develop the nation. The youth people in country have increased and so the pay panel may want to focus on Youth unemployment as, “More retirees would mean more job openings for the youth.”
Read More »

Armed forces agree to implement 7th pay commission

-
The forces argue that the anomalies lower the status and pay parity of forces vis-a-vis their counterparts in the police and civilian administration. New Delhi, September 15: After a week-long difference of opinion over the implement enhanced salaries under the 7th Central Pay Commission pay, the armed forces have heeded the advice of Defence Minister Manohar Parrikar. Chairman of the Chiefs of Staff Committee (CoSC) Air Chief Marshal Arup Raha has issued directions to all service headquarters asking them to issue orders for implementation of the 7th CPC. This means that the soldiers will receive their new salary in their pay for September, payable in October. Parrikar has assured the forces that their four-key demands will be met and issue will be sorted out but the decision of the government has to be implemented. Parrikar assured them that the "anomalies" they pointed out in the 7th CPC would be taken up at the "highest level". Their co...
Read More »