7th Pay Commission
New Delhi, Dec 26: India spends a whopping Rs 10.18 trillion on salaries of the central and state government employees, including the amount spent on implementation of the 7th Pay Commission’s recommendations. This is a staggering 8.15 per cent of the country’s GDP. The 7th Pay Commission was poised to have cost the Centre Rs 1.02 lakh crore. To avoid the extra burden on exchequers, the government denied arrears on hiked allowances under the 7th Pay Commission. Had it been done, the government would have to spend a lot more on salaries of its employees.
Out of the total GDP of India amounting to 124.88 trillion, Rs 10.18 trillion is spent on paying salaries, according to a note submitted by the Department of Personnel and Training (DoPT) to a parliamentary panel, reports DNA newspaper. The report said the implementation of 7th Pay Commission‘s recommendations added an extra 0.7 per cent burden on the GDP and a yearly burden of 102,000 crores. The salaries of 10 million central government employees account for 12.6 per cent of the central government’s total expenditure, it said.
The government approved the 7th Pay Commission recommendations for its employees with higher minimum basic pay from Rs 7,000 to Rs 18,000 per month in June last year. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay — the lowest in 70 years. It also approved revised allowances in July this year.
The Committee on Estimates chaired by veteran BJP leader Dr Murli Manohar Joshi also found that a huge amount was spent on wages, besides the expenditure on building infrastructure like offices and houses for bureaucracy, rather on delivery. While the government spends 8.15 per cent of the country’s GDP on government employees’ salaries, it spends 3.3 per cent on education, 103 per cent on health and 1.56 per cent on defence.