The 7th Pay Commission headed by Justice A.K. Mathur has proposed a hefty 23.55% increase in emoluments including pay, allowances and pension for 4.8 million government employees and 5.5 million pensioners.
The basic salary hike recommended is 16%, while that of housing rent allowance, other allowances and pensions are 138.71%, 49.79% and 23.63% respectively.
The issue of parity of pay scales for officers from the Indian Administrative Services (IAS) and other civil services cadres such as Indian Revenue Service (IRS) and Indian Police Service (IPS) remained the same due to differences in opinion within the Pay Commission.
Total revenue expenditure is expected to jump 8.1% to Rs.16.6 trillion in 2016-17 against a budgeted growth of 3.1% in 2015-16.?During?the same period, growth in capital expenditure is expected to slow to 8%, at Rs.2.6 trillion, from a budgeted growth of 25.4%.
The UPA government formed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. According to present position, the commission will take at least 20-24 months.