Last Updated:
8th Pay Commission: The Eighth Pay Commission has been formed and its TOR has also been approved, but experts are worried that the central and state governments will be burdened with huge expenses as soon as it is implemented. On one hand, employees and pensioners are eagerly waiting, but the entire process from preparation of report to cabinet approval may take 2-3 years.
8th Pay Commission: On one hand, every employee and retired people are waiting for increase in pension and salary, on the other hand, there is a possibility of huge financial burden on the central and state governments as soon as the 8th Pay Commission is implemented. Now the good news is that a new pay commission has been formed for the employees and pensioners and what will be its work i.e. the terms of reference have also been approved by the government.
Meaning, the commission is completely ready and now it is just waiting to start its work. According to this process, the report will be prepared now and then the group of ministers will review this report and then these recommendations will be sent to the central government for the final decision. At the same time, experts have said that this entire process may take 2 to 3 years to complete.
Government expenditure may increase
Famous economist Neelkanth Mishra, who is part of the Prime Minister’s Economic Advisory Council, has warned that as soon as the 8th Pay Commission is implemented, there is going to be a huge burden on the central government’s treasury. He says that such a huge expenditure will come suddenly that in the coming budgets the money will have to be spent very thoughtfully. The government will have to carefully assess how to handle this increasing expenditure.
What will be the impact on government expenditure?
Prime Minister’s Economic Advisor Neelkanth Mishra has said that if the Eighth Pay Commission is implemented, then the new salary and pension alone will cost the government more than Rs 4 lakh crore every year, and if the old outstanding arrears of five quarters are also added, then the government may have to pay about Rs 9 lakh crore at one go. In the big conference of CII, he clearly said that due to such huge expenditure, there will be a lot of pressure on the government treasury, hence the government will have to implement these recommendations very thoughtfully and carefully keeping in mind the ratio of debt to GDP, otherwise the financial health of the country may deteriorate.
Pensioners will also get full benefit
Friends, good news has come regarding the Eighth Pay Commission. Earlier, when TOR was released, there was a big question among the employee unions that there is no clear mention of pension reform in it, they also had in their mind whether the pensioners have been thrown out. More than 69 lakh pensioners were losing sleep because everyone was afraid that the new pension would not increase. Now the government has made it clear in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary himself has said that the Eighth Pay Commission will review salary, allowances and pension and give recommendations, that is, pensioners will also get full benefits, no one has been kept out, now everyone’s tension is over.
The Finance Ministry has made it clear that there is no plan as of now to merge Dearness Allowance (DA) or Dearness Relief (DR) with the basic salary. The confusion that has been going on since November will now end.
