Seventh Pay Commission, OROP will not impact fiscal deficit: Jayant Sinha
NEW DELHI: Increase in salary bill due to Seventh Pay Commission and Implementation of One Rank One Pension (OROP) will not strain government’s fiscal position, Minister of State for Finance Jayant Sinha today said.
“I think we are in a very good shape as far as fiscal management is concerned. That was appreciated by all economists,” he said while interacting with reporters after a meeting of economists which was chaired by Finance Minister Arun Jaitley at NITI Aayog.
He made it clear that the government’s fiscal position is strong enough to bear the impact of implementation of Seventh Pay Commission and OROP.
The Seventh Pay Commission report in December is expected to recommend a hike in salary of central government employees. OROP is likely to result in an outgo of Rs 8,000-10,000 crore this fiscal.
The pre-Budget meeting discussed various issues, including agriculture productivity, job creation and fiscal expenditure.
“We had some of India’s most eminent economists and commentators there. Obviously, it is very early in the cycle to start the consultation. But we felt that if there were good ideas, we could incorporate them even in this fiscal year. Obviously, for the preparation of the current budget, we could begin the work on that right now,” he said.
“It was very good interaction and we look forward to incorporating much of this for this fiscal year as well as coming fiscal.”
There were several topics that came up, Sinha said, adding that “one very important topic that we spent time on is agriculture and what we could do to increase productivity in agriculture”.
The meeting also dwelt at length on fiscal expenditure and how to ensure fiscal expenditure, particularly public investment, could be as productive as possible.
“Third major area that we spoke about is obviously the financial sector… more credit for agriculture, MSMEs and what could we do further to strengthen our banks. The final area that we also spent time on is how to ensure we are able to create more jobs for young people, whether it is in the manufacturing sector or the service sector,” he said.
NITI Aayog Vice-Chairman Arvind Panagariya, Chief Economic Adviser Arvind Subramanian and Reserve Bank Deputy Governor Urjit Patel were present.
Besides, the meeting was attended by Finance Secretary Ratan P Watal, Economic Affairs Secretary Shaktikanta Das, Revenue Secretary Hasmukh Adhia and Financial Services Secretary Anjuly Chib Duggal.
Economists such as Subir Gokarn, Director of Research at the Brookings Institution India, Ajit Ranade, Chief Economist, Aditya Birla Group, and Rajiv Lall, Vice-Chairman IDFC Ltd, also participated. Inputs with PTI
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COMMENTS
Mr Jayant Sinha has spoken differently on 28.10.2015 which becomes very surprising related to above report. It is well known that 7th CPC recommendation will be based on present finencial advice which is must.
It would be therefore advisible and in National Interest that GOI grants and implement OROP upto 31.12.2015 and go ahead as per 7th CPC report/recommendation. Under this GOI will have to pay OROP only from01.01.1014 to 31.12.2015. I very openly declaring that ESM are pro Modi and are worried for the maintenance of his image and status. I personaly feel his ministers are not happy with him and indirectly planning to put him down. They will oppose him by his term end as Shri Morarji did against PM Pt J Lal Nehru as finence Minister. Some voices have commenced through soundly based Bold speakers. Even to day Bihari youth are very worried and confused just because Modiji has not done any action to impliment what did he speak before Parliamentary Election ( modi GOM prevented by misguiding to baseless impossible projects). It is well known that Modiji cannot have majority in Rajya Sabha till 2019 when his term expires. Therefore, No Act or rule can be passed as being done to day. On the other hand Chief Minister Bihar has very wisely and systematically ( slow and studly) controlled, administered, reformed, reconstructed and brought transparency with development while BJP has been indirectly obstructing with his meagre financial resource available in state which is very well known to Bihari Youth. That is why Bihari youth has faith in Shri Nitishji and not in Modiji. I further state ESM strength for vote do count.
I, therefore, request Modiji to take Indian Armed Forces in confidence before Bihar 4th Voting by immediately implementing OROP before IESM Rally at Mumbai on 31.12.2015. There is still chance for Modiji. Mr Jayant Sinhaji's statements ratify what I have stated. Modi, sir, very free and franckly I have done my duty towards your SUCCESS. I am not stating what are harms unnoticed, unimagined can be done. It is not being done just because it would be National Disaster which could be remedied only by Defence Personnel. Your Ministers and Babus cannot do anything. May God Bless PM with right WISDOM in National Interest. Regards,
Daya Shanker Lal Srivastava Ex MCPO II, Mumbai ( 07738115388 ).
The amount likely to be suggested by Pay commission will not have effect as the increase said to be indicated will not be much due to price index plus earlier pay plus DA merged will come to a near by.Only excess publicity is making pensioners some hopes.
The next pay commission may not be there in 2026 as new recruits from 1-1-2004 are not coming as Pensioners and they will be only retired employees.
Let us wait for report to give proper views