Consumer goods manufacturers, expecting to see a revival of demand from the nearly Rs 16,500 crore Pay Commission arrears for government employees, are likely to be disappointed.
'The fiscal deficit target of 3.9 per cent of GDP seems achievable.'
Civil servants, armed forces and paramilitary personnel will get to rejoice this Independence Day with the government all set to approve the Sixth Pay Commission report in its Cabinet meeting on Thursday.
Upon implementation of the 7th Pay Commission the expected yearly burden on the central exchequer will be more than Rs 100,000 crore. Central government employees will get on an average a 24 per cent pay hike. Still, the unions aren't happy.
Though the government obn Thursday in principle accepted the Services' demand for restoring 70 per cent 'extant pensionary weightage' to jawans on the basis of their last drawn pay, the Armed Forces are cut up with the finance ministry over the rejection of their three other demands concerning officers. The CPC had recommended that the jawans be given 50 per cent 'pensionary weightage' and provided an option of lateral entry into paramilitary and central police forces.
The only sensible solution is in having a separate pay commission for the armed forces.
Prez said basic pension of ex-servicemen of the Indian Army has increased by 2.57 times as compared to pension of December 31, 2015.
The Cabinet, which met in Jammu under the chairmanship of chief minister Omar Abdullah on Thursday evening, approved the recommendations of the Cabinet Sub Committee on implementation of the 6th Pay Commission, including one that there shall be no lock-in period for withdrawal of arrears deposited to the GP Fund.
While suburban fares remain unchanged, ordinary non-AC, non-suburban fares were increased by 1 paise per km of journey. The Railways also announced a two-paise/km hike in fares of mail/express non-AC trains and four- paise/km hike in the fares of AC classes. The fare hike is also applicable to premium trains such as Shatabdi, Rajdhani and Duronto.
The move, if implemented, could change the way banks transact business. For starters, the loyal public sector bank customers could be the biggest gainers, with the Pay Commission recommending that government offices should stay closed only on the three national holidays -- Republic Day (January 26), Independence Day (August 15) and Gandhi Jayanti (October 2). All cheque clearances are expected to be faster and make money available in your accounts earlier than at present.
"I should think that we will have a final answer within about two weeks time or so," Mehta told reporters here while replying to a question on when the committee headed by External Affairs Minister Pranab Mukherjee was expected to submit its report. "But they (the Mukherjee committee) are in the process of finding out what are the issues involved. And I'm sure they will take the right decision pretty quickly," he said.
The armed forces had decided not to implement the revised pay scales from October 1.
The Covid pandemic has left a question mark on how the central government manages its staff.
The notification with regard to the Sixth Pay Commission award is ready and is currently being approved by statutory authorities. Sources said the dearness allowance effective this July is also likely to be announced the same day.
Allaying apprehensions among government servants over the Pay Commission recommendations, Prime Minister Manmohan Singh on Monday said he favoured proper remuneration for the civil and defence services. The Pay Commission has recently submitted its report and some apprehensions have been expressed by certain sections of the civil services on parts of the report, he said, addressing senior officers on the Civil Services Day in Delhi.
The sixth central Pay Commission is examining the feasibility of introducing performance-linked salaries for government employees. The commission has constituted a study group headed by Indian Institute of Management, Ahmedabad Professor Biju Varkkey to develop a model on these lines.The study group has submitted interim reports and is expected to send its final report soon.
The regulator has asked portfolio managers not to leverage the portfolio of clients for investment in derivatives and not indulge in speculative transactions that are not accompanied by actual delivery, except for derivatives trades. This is done with the intention of reducing volatility in the market and curbing undue risks.
Railway Minister Lalu Prasad has asked PM Manmohan Singh to review the sixth pay commission report. He said recommendations in the report would promote disparities among the different sections of government employees. The review should be made with regard to the Railways, as there was a lot of unrest among the rail employees and they were threatening to go on strike. A representative of the Railways -- the Finance Commissioner or Member Secretary -- would be on the committee.
Ratcheting up their protests one notch, the three service chiefs met Defence Minister AK Antony today to tell him the Sixth Pay Commission's recommendations relating to the services were inadequate and would not prevent attrition. The three chiefs said they wanted an average increase of 50 to 60 per cent in salaries, whereas all the pay commission offered was 28 to 33 per cent hike.
The Planning Commission does not foresee any significant disruption of state finances on account of increase in salaries of state government employees.
Highlights of the RBI monetary policy.
Railways to hive off all production units and workshops into new govt-owned company; may invite bids from private players to run passenger trains in next 15 days, with ownership vesting with the government.
An angry Nadda called the attack 'unprecedented' and alleged the state has slipped into 'complete lawlessness and goonda raj'. He also said the violence reflected the 'frustration' of the Mamata Banerjee government. West Bengal Chief Minister and Trinamool Congress supremo Mamata Banerjee insinuated the attack was staged.
General Nirmal Chander Vij, former Chief of Army Staff, wrote a letter in anguish to Prime Minister Manmohan Singh against the adverse implications of the sixth pay commission on the armed forces. The letter written on April 17, 2008, speaks volumes about the armed forces' dissatisfaction, which no government can ignore.
Launching an attack on the BJP, Railway Minister Lalu Prasad on Friday said the increase in prices was the "handiwork" of traders sponsored by the saffron party.Prasad said there has been a sudden increase in prices after the submission of the report of the 6th Pay Commission and this should be investigated.
'Whether Kashmir or anywhere else, whether in peace or in war, pay commissions or no pay commissions, hollowness and shortages notwithstanding, the Indian Army -- and Sekin Fif -- will always be there to keep India together.'
Fresh investments are constrained by tepid demand.
India's GDP growth quickened to 7.4 per cent in the September.
The government had committed to increasing spending in infrastructure
Railways to have functional autonomy, bear salary burden
He said Parrikar had no right or authority to order the services chiefs to accept what is not acceptable to them, adding he had once again shown his inability to understand the services.
The military will now demand further pay and promotion parity with civilians
The central government employees may get increment in their salaries on the basis of their performance as the Sixth Pay Commission is looking into the possibility of adding productivity-linked incentives to their overall income.
The Railways is expected to mobilise a substantial chunk of funds through dynamic pricing.
State employees in Karnataka will have to wait longer for wage hike.
The law was amended to bring parity between public and private sector employees (including PSUs) after the gratuity limit was raised for central government on similar lines
The 7th Pay Commission recommendations are a major challenge for the Railways.
Punjab has over 400,000 employees and pensioners and about 125,000 staff members in its corporations and boards.
The government on Monday announced a one-time Rs 10,000 interest-free festival advance to all its officers and employees as part of plans to increase consumer spending to spur demand in the economy.
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