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7th Pay Commission: Cabinet approves big pay hike for government employees The union cabinet, led by Prime Minister Narendra Modi, on Wednesday approved the recommendations of the Seventh Pay Commission, a move which will boost consumption by putting extra disposable income in the hands of the central government’s 4.7 million employees. The   Seventh Pay Commission   (7th CPC) had recommended a 23.5 per cent increase in pay, pension and allowances under a ‘business as usual’ scenario. It had envisaged an increase in pay of Rs 39,100 crore, increase in allowances of Rs 29,300 crore and increase in pension of Rs 33,700 crore, taking the total financial impact for 2016-17 to Rs 1.02 lakh crore. The   pay panel   revisions are in force retrospectively from January 1, 2016. Finance Minister Arun Jaitley had said before the budget that he would provide Rs 1.1 lakh crore and the budget documents showed that Rs 1.06 lakh crore has been provided for. The centre ...

Finance Minister Arun Jaitley's third Budget performed a delicate task of prioritisation: meeting additional spending burdens while staying on the previously announced path of fiscal consolidation. Jaitley kept infrastructure spending elevated while also addressing the slowdown in the rural economy; yet his estimates of increases in tax revenue were generally agreed to be reasonable, with the additional revenue coming from non-tax sources including disinvestment and spectrum auction receipts. This fiscal discipline will have increased pressure on the Reserve Bank of India to cut rates and spark an investment and growth recovery. ALSO READ:  Budget in 2 minutes                          Budget Nuts & Bolts THE KEY ISSUES CORPORATION TAX Option for New manufacturing firms to be taxed at 25%; one-time dispute resolution for retro tax PROVIDENT FUND Future deposits to be taxable in part when withdrawn Show ...

Finance Minister Arun Jaitley said on Tuesday the government would continue the thrust on public spending in the upcoming Budget. The government would do this in spite of the additional expenditure burden of nearly Rs 1 lakh crore due to One Rank, One Pension (OROP) and the  Seventh Pay Commission  recommendations for the next financial year. “Public investment has been stepped up in the past year and it will continue to remain stepped up. When you fight a global slowdown, public investment has to lead the way,” Jaitley said at the foundation day of India Infrastructure Finance Company in New Delhi.  Read More