Wages, pension strain on revenue deficit targets

The government might make a provision of Rs 1.1 lakh crore in the next financial year to implement OROP

Ex-servicemen protesting for One Rank One Pension at Jantar Mantar in New Delhi

The Budget preparation has brought the focus on the fiscal deficit target that Finance Minister Arun Jaitley is likely to announce. However, the challenge will be even greater on the revenue deficit front arising from higher government expenses on salaries and pensions. A likely higher revenue deficit has the potential to make India's fiscal balance sheet unhealthy. The revenue deficit is a situation when the government's outgo on salaries, pensions and subsidies is higher than receipts, not resulting in any asset creation. The government's efforts to contain the revenue ...