Govt nod to increase in staff allowances

The allowances will cost the exchequer Rs 29,300 crore

In a bonanza to 4.8 million central government employees, the Union Cabinet on Wednesday approved recommendations of Seventh Central Pay Commission with 34 modifications which will impose an additional annual burden of Rs 30,748 crore on the exchequer.

The increased allowances, which comes into effect from July 1, 2017, is based on the recommendations of the Committee on Allowances (CoA).

The allowances would have cost the exchequer Rs 29,300 crore. The modified allowances approved by the Union Cabinet headed by Prime Minister Narendra Modi will increase the burden by Rs 1,448 crore to Rs 30,748 crore per annum.

Briefing the media after the Cabinet meeting, Finance Minister Arun Jaitley said the modifications are based on suggestions made by the CoA in its report submitted to the finance minister on April 27, and the Empowered Committee of Secretaries set up to screen the recommendations of the seventh pay panel.