Keep government pay hikes within the limits of fiscal prudence
2 months ago

Keep government pay hikes within the limits of fiscal prudence

Live Mint  

The government’s decision to set up the 8th Pay Commission for salary revision is hard to reconcile with its oft-vocalized stance in favour of fiscal prudence. Delhi houses many central employees and even the state government’s staff can expect pay hikes in tandem with theirs. Add to that perks like free or subsidized access to medical care, job security and pension—even under the New Pension Scheme, government employees have an edge over their private-sector counterparts—and the case for a wage hike gets even weaker. At the macro level, large jumps in government pay could play havoc with its finances, forcing budget cutbacks on essential developmental needs that cater to all Indians, rather than just privileged government employees.

History of this topic

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