7th Pay Commission Latest News – Govt to Issue Notification after States Polls

7th Pay Commission Latest News – Govt to Issue Notification after States Polls – Reliable sources indicated that the Seventh Pay Commission recommendations implementation notification will be issued in June, after cabinet nod.

The notification to put into effect the Seventh pay commission recommendation will be issued after the completion of states assemblies’ poll process as the model code of conduct is currently in place, sources of Finance Ministry said on Wednesday.

The assemblies’ election of Tamil Nadu, West Bengal, Assam, Kerala and Puducherry states, which will be held from April 4 to May 16 and the counting of votes in the states will take place on May 19 but the model code of conduct will remain in place till May 21.

A Finance Ministry sources was quoted by a news website as saying, “The BJP led central government decided execution time of the pay commission’s proposals in April but the Empowered Committee of Secretaries headed by cabinet Secretary can’t sort out some anomalies of Seventh pay commission recommendations like scrapping of advances, allowances and minimum pay before declaration of states Assemblies polls”.

Sources also said the Implementation cell of the Empowered Committee of Secretaries for the Seventh pay commission recommendation in Finance Ministry works hard to send a summary of the pay commission implementation to PMO for its nod. After PMO’s nod, it would be placed before the cabinet for its nod through cabinet secretary.

Reliable sources indicated that the Seventh Pay Commission recommendations implementation notification will be issued in June, after cabinet nod.

The government doesn’t want to give any chance to the Opposition to deter its image in the polls, so, it is believed that the government will announce Seventh pay commission award after the end of model code of conduct of states assemblies election.

7th Pay Commission Latest News – Govt clarifies on provision in the Budget – Though no explicit provision was made in Budget pay hike is built in fund allocated to Ministries

7th Pay Commission report on pension and pay: With absence of an explicit overall provision for the 7th Pay Commission in FM Arun Jaitley’s Budget 2016 raising questions, government clarified said the once-in-a-decade pay hike has been built in as interim allocation for different ministries and Budget numbers were credible. Implementation of the 7th Pay Commission report is to cost the government Rs 1.02 lakh crore.

7th Pay Commission report on pension and pay: The voluminous Budget documents state that “the implementation of the 7th Pay Commission due from January 1, 2016 is to be implemented during the financial year 2016-17 as also the revised One Rank One Pension (OROP) scheme for Defence services.”

7th Pay Commission report on pension and pay: “The government has made provisions for the additional liabilities on these count,” it said, without giving the amount allocated for implementation. Economic Affairs Secretary Shaktikanta Das said the number cannot be quantified and it has been built up in budget of various ministries. “We cannot really quantify how much we require in 2016-17. Because the Committee of Secretaries have to first give its recommendations, then govt will take a decision and then only we will know what is the requirement in FY17,” he said.

7th Pay Commission report on pension and pay: “We have the Pay Commission recommendations with us, we have analysed the likely requirement and it has been built into the Budget of various ministries. Some suitable interim provisions have been made,” he said without elaborating. “Hence the expenditure and revenue numbers are credible.” Das said Finance Minister Arun Jaitley in his Budget speech stated that interim provisions have been made. “And these provisions are there in the Demands for Grants for individual departments and ministries. It is built into and subsumed into those allocations.”

7th Pay Commission report on pension and pay: “The Budget reaffirmed the commitment of the government to continue with the process of fiscal consolidation as projected in the Medium Term Fiscal Policy Statement of 2015-16 despite a tough external environment,” the documents said.

7th Pay Commission report on pension and pay: Accordingly, fiscal deficit has been projected at 3.5 per cent of GDP in 2016-17. “In accordance with the amended FRBM targets, the fiscal deficit of 3 per cent is projected to be achieved in 2017-18 onwards. Keeping in view the challenge of reduction of fiscal deficit by 0.4 per cent of GDP in a difficult year in 2016-17 with substantial additional liabilities on pay revision etc, the government is quite optimistic of fully achieving the fiscal deficit target of 3 per cent or below by March 2018,” the documents said.