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2015-16 outgo on central government salaries to exceed Rs.1 lakh crore

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New Delhi: Outgoes towards central government salaries will exceed Rs.100,000 crore in the current fiscal,

which will increase further on implementing the recommendations of 7th Pay Commission, parliament was told on Wednesday.

As per the government’s Medium-Term Expenditure Framework Statement tabled by Finance Minister Arun Jaitley in parliament,

the expenditure towards salary of central government employees will go up 9.56 percent to Rs.1,00,619 crore in 2015-16.

Outgo will increase further in 2016-17 at 15.79 percent to Rs.116,000 crore with the likely implementation of the 7th Pay Commission recommendtions, the statement said. In 2017-18 it will rise to over Rs.128,000 crore.

“The award of VII Central Pay Commission (CPC) and its impact on government finances poses a risk,” the statement said.

It also said the pension bill of government employees will rise to Rs.88,521 crore in the current fiscal and is projected to grow to over Rs.102,000 crore in 2016-17, and over Rs.112,000 crore in 2017-18.

“Like in salaries, higher than normative growth has been provided for the projection of outlay on pensions during 2016-17.

For the second year of the projection (2017-18), a normative growth has been assumed,” it added.

Set up in February 2014, the recommendations of the 7th Pay Commission are likely to be implemented from January 1, 2016.

IANS