Tuesday, February 16, 2016

Budget crisis and 7CPC

It seems,  as many including our FM says,   the 7CPC and OROP are making a hell of the Indian economy. On the other hand  some experts say otherwise. One economist says " Never waste a crisis".
The report says :
"
The FM has budgeted Rs 1.1 lakh Crore for pay and pension hikes  slightly more generous than the 7CPC recommendations.  This payout to the CG employees and pensioners will spur consumption spending in the economy and therefore support growth. But it will also stretch the resources that the FM has to keep the fiscal deficit under the 2016-17 target of 3.5 %.
....
If the 7CPC award will lead to a feel-good factor ,  disinvestment and subsidies rationalisation would control the fiscal deficit.
"

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