A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, India November 15, 2016. The demonetisation drive and the resultant surge in the government's coffers could reduce the impact of financial burden as a result of implementing 7th Pay Commission's proposals on raising allowances, as and when they are implemented.Reuters file
Central government employees who have been enduring a long wait for getting their enhanced allowances as recommended by the 7th Central Pay Commission (CPC) can take comfort from two recent reports. First, an observation by the Reserve Bank of India (RBI) governor Urjit Patel and now, a report by BofA Merrill Lynch Global Research, citing fallout of demonetisation
According to the BofA Merrill Lynch report, the Narendra Modi government's second income tax amnesty scheme — Pradhan Mantri Garib Kalyan Yojana, 2016 — could fetch a huge amount to offset the financial implication of implementing the 7th CPC recommendations. The scheme was announced as a follow-up measure to demonetisation.
"The Government announced that the second income disclosure scheme (IDS II) will run till March 31. We continue to estimate that it will net the fisc about Rs1000bn/0.7% of GDP of additional taxes. This should allow Finance Minister Jaitley to hold the FY18 fiscal deficit at 3.5% of GDP - same as FY17's - and at the same time fund the 7th Pay Commission and recapitalize PSU banks, without cutting back on public capex," BofA Merrill Lynch said in a note recently.
Earlier, the RBI had said that the implementation of the recommendations of the pay commission for Central government employees won't have an inflationary impact.
In tandem with its efforts to crack down on black money after demonetisation, the government also offered a second amnesty scheme to tax defaulters to come clean by paying higher taxes.
The latest scheme entails penalty and deposit of 25 percent of the (hitherto) undisclosed income in a bank account where the money will be locked in for four years without fetching an interest.
The CPC examined 196 allowances and gave its recommendations on abolishing or raising some of them while recommending others to be subsumed with other perks.
Advertisement: Replay Ad
It had proposed 138.71 percent hike in HRA and 49.79 percent for other allowances, while submitting its voluminous report in November 2015.
The recommendations of the 7th CPC cover 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Read at::http://www.ibtimes.co.in/7th-pay-commission-good-news-central-government-employees-709877
Popular
Label List
- -BONUS ORDER
- 'BONUS
- AICPIN
- AIDEF
- AIR INDIA
- AIRF
- AITUC
- ALLOWANCE
- annual increment
- ARMY
- BANK EMPLOYEES
- BSNL
- cadre restructuring
- cadre review
- CBSE
- cgda
- CGHS
- CHILD CARE LEAVE
- children education allowance
- CONFEDERATION
- DA
- DC JCM
- DEARNESS ALLOWANCE
- dearness relief
- DOPT
- EMPLOYEES PROVIDENT FUND
- EPFO
- FAMILY PENSION
- finmin
- FIXED MEDICAL ALLOWANCE
- GDS
- GENERAL PROVIDENT FUND
- GPF
- GRADE PAY
- HOLIDAY
- HOLIDAY HOMES
- HOUSE BUILDING ADVANCE
- HOUSE RENT ALLOWANCE
- HRA
- INCOMETAX
- JCM
- JCM III
- KENDRIYA VIDYALAYA
- LEAVE TRAVEL CONCESSION
- LTC
- LTC 80 FARE
- LTC ADVANCE
- MACP
- MATERNITY LEAVE
- MAY DAY
- MINISTRY OF DEFENCE
- MINISTRY OF FINANCE
- MODIFIED ASSURED CAREER PROGRESSION
- NATIONAL ANOMALY COMMITTEE
- NATIONAL PENSION SCHEME
- NATIONAL PENSION SYSTEM
- NC JCM
- NEW PENSION SCHEME
- NIGHT DUTY ALLOWANCE
- NJCA
- OFB
- one rank one pension
- ONE RANK ONE PENSION.
- ORDINANCE FACTORY BOARD
- paternity leave
- pay fixation
- PCDA
- PENSION
- post offices
- POSTAL EMPLOYEES
- RAILWAY BOARD
- RAILWAY BONUS
- RAILWAY EMPLOYEES
- retirement
- retirement age
- revision of pension
- VRS
- WOMEN EMPLOYEES
Follow by Email
DISCLAIMER
The contents and information given in this blog are purely informative in nature and should not under any circumstances be taken as authority. All efforts had been made to ensure accuracy of the content on this (www.centralgovernmentemployees.com) blog. The same should not be construed as a statement of law or used for any legal purposes. centralgovernmentemployees.com accepts no responsibility in relation to the accuracy, completeness or otherwise, of the contents. Users are advised to verify/check any information with the relevant departments and to obtain any appropriate professional advice before acting on the information provided in the blog. We cannot guarantee the availability linked pages at all times.
Post a Comment