Pensions and other Retirement benefits for Retired Defence Personnel.
The Exclusive Analysis made by the Team of paycommissions.blogspot.in on Defence Pensions Expenditures allocations made by the Government in the Budget 2016- 2017 for the benefits of Retired Defence Personnel (Ex-Servicemen). The Central Government has made provisions on 7th Central Pay Commission and One Rank One pension for the benefit of Retired Defence Employees in the Budget 2016- 2017. The total expenditure on Defence Pensions has been increased by the government of Rs. 22094.66 Crores in the budget 2016, due to mainly growth in pensionary benefits also including for implementation of One Rank One Pension and 07th Pay Commission. These increased expenditures will be provides for the benefits of Defence Pensioners, i.e. Army, Navy, Air Force, Ordnance Factories etc.
The Central Government made provisions in the budget 2016- 2017 on demands for Grants 2016- 2017 on Defence Pensions under Ministry of Defence. One of the main reason behind increase in the amount of Defence Pensions for retired defence personnel in the budget is also due to implementation of the One Rank One Pension and implementation of Recommendations of the Seventh Central Pay Commission (7th CPC).
This is an Important analysis provides by paycommisions team under the budget 2016 documents. The detailed budget expenditure allocations for Defence Pensions are made in the form of NON-PLAN: Rs. 60449.75 Crores in Budget 2014- 2015, Rs. 54500.00 Crores in Budget 2015- 2016 (Rs. 60238.00 Crores in REVISED Budget 2015- 2016), Rs. 82332.66 Crores in Budget 2016- 2017. The Net Increase of Rs. 22094.66 for Defence Pensions in th Current Budget 2016- 2017 provided (including also, OROP, 7th CPC).
The bifurcation of expenses in budget 2016- 2017 for Central Government Employees article published by Business Standard. The NDA Government has increased two times the Defence Pensions’ Expenditures in Revised Budget 2015- 2016 and Budget 2016- 2017 respectively. This analysis is based on the Budget 2016- 2017 documents of the Central Government of India.
Actual Allocations of Expenditure of Defence Pensions made in Budget 2016- 2017 given as under, The Budget allocations, net of recoveries, are given below:
Defence Pensions provides for pensionary charges in respect of retired Defence personnel (including civilian employees) of three Services viz. Army, Navy and Air Force and also employees of Ordnance Factories, etc. It covers payment of service pensions, gratuity, family pension, disability pension, commuted value of pension and leave encashment. The increase in BE 2016-17 is mainly due to normal growth in pensionary benefits and increase in provision towards payment of Gratuity, Commuted Value of Pension and Superannuation and Retirement Benefits. Increase of higher provision is also due to increase in number of pensioners and anticipated provisions of Dearness Relief, implementation of the recommendations of 7th Central Pay Commission and implementation of One Rank One Pension'.
Rewards- Army, Navy, Air Force: The amount is provided for casuality awards such as war-injury, Pay and Gallantry awards like Param Vir Chakra, Mahavir Charka etc. in respect of three services i.e. Army, Navy and Air Force.
Source:- Budget 2016- 2017 Documents