Tuesday, June 24, 2014

The fiscal middle distance

..........The Sixth Pay Commission scales were accommodated within the fiscal stimulus sanctioned after the global crash in 2008-09, but the difficulty of applying the brakes on that stimulus is what we are seeing right now. The 13th Finance Commission recommended that Centre and states make annual contributions towards a fund to cover decadal pay scale revisions. There is still time. The Seventh Pay Commission was not due to be appointed until 2016-17, and its report is not due until 2017-18. With the forthcoming Budget, the Centre could make a start on a fund build-up..........

No comments: