The Union Cabinet is planning to implement the high allowance for the central government employees most probably from February 2017 as per the recommendations made in 7th pay commission. The Confederation of Central Government Employees and Workers observed the advisory on the basis of Reserve Bank of India‘s statements.
RBI governor DrUrijit Patel stated during a press conference that the respective observation had been made after following certain guidelines for the central industry workers. The recommendation includes as the disbursement of salaries and arrears has not been disruptive to inflation outcomes. The extension of two months for the 7th pay commission recommendation might receivehigher notification thus pushing it forward to the next fiscal year rather than initiating from this year.
It further allows the expenditure to be minimal thus having a negligible impact on the inflation rate as well as the prices. The scope for some improvisation in the norms of 7th pay commission recommendation deprives to fitment formula provided the Centre positively consider the staff side demands. Recommendation for a hike in salaries will be considered from February 2017 and only be applied from the next fiscal year i.e. April 2017.
The notification for the higher allowances which is to be implied from 2017 is going through major developments as Cabinet is still under dilemma as Finance Ministry has all set to get involve in it only on the conditions of anonymity. The hike in basic pay for the central government employees will be applicable only when the nationwide challenge of cash crunch is kerbed. The notification has been taken by Ministry of Finance as well as Prime Minister’s Office who tend to clarify the issue after the 30th day of the demonetization.
Providing higher allowances to million of employees would be effective after the cash problem is solved as RBI issued a notice regarding the shortage of payment dues in the normal sector itself where billion of other workers and wagers are not able to receive their basic salary. As per the 7th pay commission, the new salaries will be paid from the next financial year which is going to be applied from February 2017. Until then, Centre is trying best to curb cash issues and follow the recommendation for the betterment of the nation.