OROP and Finance Commission

The 14^th Finance Commission , in its recent report, have observed the following.

“A   potential fiscal  liability may arise in the  future with the introduction of OROP scheme for Defence services.”

Though a budget provision has been made in FY 2014-15 towards OROP, the payment has not been made. Hence the payment was deferred to FY 2015-16.  The estimated increase on this account is  6.62%.

The Finance Commission also stated that “ the pension  expenditure may increase by 8.7 % in 2015-16, and by 30 % in 2016-17. 

This clearly indicates that 7CPC implementation would happen only in 2016-17.

About CPCs

1 CPC                     1943

2 CPC                     1958-59                                                addition  of  Dearness Allowance

3 CPC                     1972-73

4 CPC                     1983-86                wef  1-1-1986

5 CPC                     1993-96                wef  1-1-1996

6 CPC                     2004-06                wef  1-1-2006

7 CPC                     2014-15                wef  1-1-2016

(more  details will be compiled up here)

DA 10 % ; 7CPC

The Union Cabinet is expected, on next Friday,  to consider raising the DA by 10 % (wef 1-1-2014). This will make the DA 100 %  !!  This will benefit 50 lakh serving employees and 30  lakh pensioners.

The terms of reference of the 7th Central Pay Commission is likely to be approved by the Cabinet on this day.

Seventh Central Pay Commission

Seventh Central Pay Commission ( 7CPC ) constituted.

The setting up of the Seventh Central  Pay Commission was approved in September 2013 by the Prime Minister.  Now, the 7CPC is constituted on Tuesday, 4th February 2014, and is expected to benefit 35 Lakhs Central Govt Employees and  30 Lakhs Pensioners.

Please read below, the full news item appeared in THE HINDU today.
 

More interesting information is given in the graphic here. This will have a very crucial value/ role in the 7CPC  recommendations, and subsequent Govt approvals.