Budget Allocation for 7CPC Pay and Pension Hike is TRUE

“Missing: $15 billion lost somewhere in India’s 1,500-page budget” .

Bloomberg, a business analysis and TV & internet media, had earlier reported that an amount equivalent to US$ 15 Billion which is to be paid to CG Employees and Pensioners as result of implementation of 7CPC in the year 2016-17, has not been taken in to account in the Budget 2016-17.

But now another agency, Livemint, has come out with a finding. They said :

"The first place to look for is under non-plan expenditure, and a table titled “Estimated strength of establishment and provision thereof”. This details how many employees are there in 56 government departments (excluding Defence) and how much the government has budgeted to pay their salaries: an increase of Rs.65,690 crore in 2016-17. Thus, we have accounted for around 65% of SPC’s impact.

The second place to look for is pensions, the details of which are again provided under non-plan expenditure. This shows the government has budgeted for an increase of Rs.37,066 crore.”

Thus, the total increase in salary and pension bill in 2016-17 is Rs.102,756 crore. However, there is one rider. The pension liabilities include increased outgo on account of implementing the OROP scheme.

What’s “missing” is $1 billion and not $15 billion.”

That's Good News !

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