Economy needs to grow by 1.5 % more to sustain wage hikes: Arun Jaitley
Updated: Dec 31, 2015 11:46:12am
New Delhi Dec 31 (KNN) Finanace Minister Arun Jaitley said that Indian Economy needs to grow by extra 1-1.5 percentage points to sustain wage hike and other benefits given to workers and the poor.
He was speaking at the felicitation function organised by the Bharatiya Mazdoor Sangh (BMS).
He said that Our GDP growth of 7.5 per cent is at a time when the world is experiencing global slowdown. We need to increase our growth rate. We have to at least increase it by 1-1.5 per cent.
India’s Gross Domestic Product grew at 7.2 per cent in first half of 2015-16. Finance ministry’s Mid Year Economic Analysis estimates GDP growth between 7 per cent and 7.5 per cent in the current financial year.
“In the coming year, there would be burden of Rs 1.02 lakh crore of Seventh Pay Commission, OROP (One Rank One Pension) burden is also there. That burden can be sustained only when there is increase in economic activity. Because of increased economic activity, government revenue and resources will go up,” he said.
The seventh Pay commission has submitted its report to the Government last month with a recommendation that 23.55 per cent overall hike in pay, allowances and pensions of central Government employees with effect from January 1, 2016 needs to be done. The commission is headed by Justice AK Mathur.
This will lead to the Centre’s salary bill increasing by Rs 1,02,100 crore in 2016-17.
The government is ready to have dialogue with the trade unions with regard to wage increase, he said.
He said the government’s view is that the benefits of economic development should first accrue to labourers and the poor. He said minimum wages of labour should be at least respectable and take care of inflation. (KNN Bureau)
He was speaking at the felicitation function organised by the Bharatiya Mazdoor Sangh (BMS).
He said that Our GDP growth of 7.5 per cent is at a time when the world is experiencing global slowdown. We need to increase our growth rate. We have to at least increase it by 1-1.5 per cent.
India’s Gross Domestic Product grew at 7.2 per cent in first half of 2015-16. Finance ministry’s Mid Year Economic Analysis estimates GDP growth between 7 per cent and 7.5 per cent in the current financial year.
“In the coming year, there would be burden of Rs 1.02 lakh crore of Seventh Pay Commission, OROP (One Rank One Pension) burden is also there. That burden can be sustained only when there is increase in economic activity. Because of increased economic activity, government revenue and resources will go up,” he said.
The seventh Pay commission has submitted its report to the Government last month with a recommendation that 23.55 per cent overall hike in pay, allowances and pensions of central Government employees with effect from January 1, 2016 needs to be done. The commission is headed by Justice AK Mathur.
This will lead to the Centre’s salary bill increasing by Rs 1,02,100 crore in 2016-17.
The government is ready to have dialogue with the trade unions with regard to wage increase, he said.
He said the government’s view is that the benefits of economic development should first accrue to labourers and the poor. He said minimum wages of labour should be at least respectable and take care of inflation. (KNN Bureau)
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