• DOPT
  • 7th CPC
  • LTC
  • Aadhar
  • AICPIN
  • Bank employees
  • CCS Rules
  • CSD
  • DA
  • JCM

CENTRAL GOVERNMENT EMPLOYEES NEWS

CG Staff News, Central Govt Employees News, Expected DA, Dopt Ordres, 7th Pay Commission News, Retirement Age

  • Home
  • 7thCPC
  • OROP
  • DOPT orders
  • 7th CPC PayScales
  • LTC
  • CGHS
  • Holidays
  • RETIREMENT AGE

7th CPC – Inflation could offset Salary Hike for Central Government Employees…

August 17, 2016 By admin

7th CPC – Inflation could offset Salary Hike for

Central Government Employees…

The hike in salary for Central government employees and pensioners may turn out to be a short-lived joy given that rising prices of many commodities could negate the monetary benefits. The spike in inflation has been sharp in the past few months and could spell trouble for the Narendra Modi government also, besides disappointing 47 lakh employees and about 53 lakh pensioners.

Food inflation has been rising at a fast clip even before the impact of the salary hike could be felt. The disbursement of salary arrears for seven months happened only during the end of July while pensioners are yet to get their dues since the notification for retirees was issued only this month.

However, price rise has already gathered momentum in the past two months, with retail (CPI) inflation hitting a two-year high of 6.07 percent for July. Food price inflation rose even higher, to 8.35 percent. The spike was 27.53 percent for pulses, 21.91 percent for sugar and 14.06 percent for vegetables.

The data released on Tuesday shows that wholesale inflation (WPI) also scaled a 24-month high of 3.55 percent. Here too, food prices rose at a higher clip than the rest of the items forming part of the index. The wholesale prices of food articles climbed 11.82 percent on a year-on-year (YoY) basis, with the sharpest spike seen in pulses (35.76 percent) and vegetables (28.05 percent). Sugar prices skyrocketed 32.33 percent, YoY.

With the government yet to decide on quantum of hike in allowances, it is difficult to gauge the inflation trajectory once the disbursements start, apparently in November this year.

The Reserve Bank of India (RBI) has repeatedly raised concern over the effect of pay commission outgo on inflation.

“The prospects for inflation excluding food and fuel are more uncertain; if the current softness in crude prices proves to be transient and as the output gap continues to close, inflation excluding food and fuel may likely trend upwards and counterbalance the benefit of the expected easing of food inflation. In addition, the full implementation of the recommendations of the 7th central pay commission (CPC) on allowances will affect the magnitude of the direct effect of house rents on the CPI,” RBI governor Raghuram Rajan said in his third bi-monthly monetary policy statement on August 9.

For those who are employed in the private sector or in the unorganised sector, the impact will be even sharper as they are unlikely to get the cover enjoyed by government employees. If the clamor among state government employees picks up, their (state governments’) fiscal calculations are bound to take a hit. For poll-bound states such as Uttar Pradesh, Goa and Punjab, it will be a tough balancing act, of keeping employees happy and ensuring fiscal prudence.

Source: ibtimes

Related Posts:

  • 7th CPC – Central Government Employees set to get 14.27% hike in salary and not 23.5% at present….
  • 7th Central Pay Commission: Latest news and updates on Allowances…
  • 7th CPC Promotion: Fixation of Pay on Promotion from the Date of Next Increment Option – DOPT Orders with Illustration…
  • Finance Ministry issues new Travelling Allowance Rules…
  • 7th Pay Commission is the last: Employees to now get yearly revision of salaries..




Recent Entries

Holidays to be observed in Central Government Offices during the year 2018…

October 22, 2017

Website for Gallantry Awardees since Independence Launched…

August 15, 2017

Prime Minister addresses nation from the ramparts of the Red Fort on 71st Independence Day…

August 15, 2017

7th CPC – Transport Allowance issue settled for Pay Matrix Level 1 and 2….

August 15, 2017

Centre To Cut 25 Percent Govt Jobs…

August 13, 2017

NFIR – MACPS anomaly as a result of implementation of 7th CPC Pay Matrix levels…

August 12, 2017

NFIR – Anomaly in 7th CPC Pay Matrix Levels…

August 12, 2017

Retired Government servants to be appointed on contractual basis in Government Departments…

August 11, 2017

7th Pay Commission: Bad news for central government employees, no minimum pay hike…

August 10, 2017

NCERT launches its Web Portal for supply of NCERT Textbooks…

August 10, 2017




list

holidays
aicpin M
union cabinet

nps2

highlights

Like us on Facebook

August 2016
M T W T F S S
« Jul   Sep »
1234567
891011121314
15161718192021
22232425262728
293031  

Enter your email address:

Delivered by FeedBurner

Subscribe to CENTRAL GOVERNMENT EMPLOYEES NEWS by Email




Pages

  • 7th CPC
  • 7th CPC PayScales
  • CGHS
  • DISCLAIMER
  • DOPT
  • LTC

Categories

Copyright © 2021 · News Pro Theme On Genesis Framework · WordPress · Log in