Pay hike to drive inflation further: BJP

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Pay hike to drive inflation further: BJP

Onkar Singh in New Delhi | March 24, 2008 17:59 IST

The implementation of the Sixth Pay commission report would further escalate prices instead of curbing inflation, Mukhtar Abbas Naqvi, senior vice president of the Bhartiya Janata Party said.

"We will have to study the report and get to the bottom of its implications before reacting," Naqvi told rediff.com soon after the report was made public.

The Sixth Pay Commission has recommended a hefty increase in salaries of over 4.5 million central government employees, a move that would cost the exchequer Rs 12,561 crore (Rs 125.61 billion) in 2008-09.

The Commission, headed by Justice B N Srikrishna, submitted its report to Finance Minister P Chidambaram recommending implementation of the revised pay from January 1, 2006, which would impose an arrear payout burden of Rs 18,060 crore (Rs 180.60 billion) on the government.

The BJP leadership has condemned the series of populist measures taken by the UPA government in the election year with a view to influence voters. BJP spokesperson Rajiv Pratap Rudy criticised the government for its inability to curb prices.

"The BJP takes serious note of the spiraling prices of essential food items including daily groceries, fuel, edible oils, fruits and vegetables," Rudy said. He said even essential items have become unaffordable for the common man. This includes sugar where prices have shot up by 6 per cent, while the price of rice has increased by 25 per cent and and vegetable oil by 33 per cent.

"The wholesale price based inflation index has breached RBI's comfort zone and has risen to 5.92 per cent this week," he pointed out. He also termed the budget presented by P Chidambaram as a tom-tommed budget.

The Sixth Pay Commission