Government Warns of Impact from Seventh Pay Commission
The government on Friday warned that its the fiscal outlook for next fiscal year (2016-17) remains challenging. In its mid-term economic review, the government said that the impact of the recommendations of the Seventh Pay Commission will be seen next fiscal year.
The government will have take a hit of over Rs 1 lakh crore per year if the recommendations of the Seventh Pay Commission are accepted. Economists said that the pay panel proposals are likely to be implemented next fiscal.
For this fiscal (2015-16), the government has reiterated GDP growth rate of between 7 per cent and 7.5 per cent and fiscal deficit target 3.9 per cent.
For the next fiscal, the government has a fiscal deficit target of 3.9 per cent.