Central Government Employees Salary Expenditure
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There are various reports of wage hike from 15.79 % to 40% in news papers/social media / web sites. It is once again clarified that none of these are correct. If we go through the statement of the Finance Minister in Parliament which says the salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current fiscal. The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award, the outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.
The budget 2015-2016 : if go through the budget of 2015 -16 http://indiabudget.nic.in/ub2015-16/rec/tr.pdf expected tax revenue is 14,49,490.56 (In crores of rupees).
The Central Government employees wage bill is around Rs 1,00,000 crore . The actual wage bill is now at just 8.5 % of the revenue collection please see . http://finmin.nic.in/pru/BROCHURE/brochure2012-13.pdf .
The budget allocation at just 9.56 % as projected is not the real wage increase by the 7th CPC the Central Government employee is expecting, may be the 7th CPC may give higher wage increase than the budget allocation. If we go through the budget expenditure of 2008-09 when the 6th CPC was implemented the 16% of the total revenue was spent as wages.
The Government being model employer should pay its employees the real wages. The real wage hike the Central Government employee is expecting is more than 80% wage hike. Due to following factors. even the 5th CPC the wage increase was about 40% and 6th CPC recommendations the wage increase was about 40% even after merger of DA in 2004, hence the wage increase during from 2004 & 2006 together was more than 60%. Now we should hope for better wage hike from the 7th CPC.
a) The actual price rise in last decade is more than 250% , DA we got is just 119% as on 1/7/15.
b) The DA merger has not taken place as on 1/1/14 which would have given a wage hike of 25%.
c) All Government agencies such as Banks, Public sector undertakings, LIC, State Governments etc are having wage revision in 5 years, we are having only wage revision of 10 years, the price rise is eroding the wage hike in just a few years.