FM speaks on Implementation of 7th Pay Commission report

FM speaks on Implementation of 7th Pay Commission report in Parliament and tables Medium Term Expenditure Frame Work Statement – Central Government Employees Salary Expenditure to cross Rs. 1 lakh Crore.

Central government’s salary expenditure will exceed Rs 1 lakh crore in the current fiscal and is projected to increase further with the recommendations of 7th Pay Commission, posing risk to public finances, Finance Ministry said today.

According to the Medium-Term Expenditure Framework Statement tabled in Parliament, 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, said the statement tabled by Finance Minister Arun Jaitley in Parliament.\

The outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.

“The award of VII Central Pay Commission (CPC) and its impact on government finances poses a risk,” said the statement.

It also raised concerns about the rising pension bill of government employees saying it will rise to Rs 88,521 crore in current fiscal. It has been pegged at over Rs 1.02 lakh crore in 2016-17, and over Rs 1.12 lakh crore in 2017-18.

“Like in salaries, higher than normative growth has been provided for the projection of outlay on pensions during 2016-17. For the second year of the projection (2017-18), a normative growth has been assumed. Award of VII CPC and its impact on Government finances poses a risk,” it added.

The recommendations of the 7th Pay Commission, which was set up by in February 2014, is likely to be implemented from January 1, next year.
Source: The Economic Times


  1. What about the risk when you plan for 1 lakh crore investment of bullet train?. In two days rain, two trains derailed derailed simultaneously.

  2. Can anybody compare. per head expenditure of govt on employees and M.Ps of parliament? Then only truth on expenditure on poor govt employees can be known.

  3. Increase in pay of MP & MLA’s by 25% iswelcomed , loss of thousand crore in parliament activities,electricity bills in lakhs,
    From where these money earned. Whynot salary of noisy days of parliament is reimbersedfrom his salary

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