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Pay hike: Maharashtra readies for Rs 21,000-cr mega blow

By Sanjay Jog
July 08, 2016 14:09 IST

There are 1.9 million employees and 650,000 pensioners in Maharashtra.

The Maharashtra government, which had projected a revenue deficit of Rs 3,644 crore (Rs 36.44 billion) for 2016-17, might have to bear an additional annual burden of Rs 18,000-Rs 21,000 crore (Rs 180 billion-Rs 210 billion) to implement the 7th Pay Commission recommendations.

There are 1.9 million employees and 650,000 pensioners in Maharashtra.

The government’s outgo on salary and pension was at Rs 93,367 crore (Rs 933.67 billion), 46 per cent of the revenue expenditure of Rs 2,01,988 crore (Rs 2.01 trillion) in 2015-16.

Finance Minister Sudhir Mungantiwar estimates the annual outgo at Rs 18,000 crore (Rs 180 billion). But clarity would come after the finance department studies the Centre’s notification.

“The state government will set up a committee and take a call on the implementation of 7th Pay Commission report on the lines of the Union government,” a finance department official said.

The officer recalled the implementation of 6th Pay Commission report (since January 1, 2006) had resulted in an annual outgo of Rs 10,000 crore (Rs 100 billion).

Sanjay Jog in Mumbai
Source: source
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