The unceasing hue and cry over the 7th Pay Commission over ‘23.55% hike’ benefiting one crore government employees and pensioners of Central Government employees has laid an impetus on the overall Indian economy. Escalation in the demand of goods and services is expected on one side coin, while on the other side the higher pay would bolster savings among the white collars. Consequently, the banking and financial system will have more funds to meet the investment demand, which might have a negative impact resulting in inflation in the industrial group from automobile to consumer durables.
Despite the hike, few disgruntled employees have taken roads to protest, ignoring the perks and beneficiaries enjoyed by them. This clamor against the decision of the Cabinet have raised an important question. – Can we expect an improvement in the quality of service in Government where rampant irregularities are a major menace? Does the increment will deliver a better governance, often plagued by uncertain results? The staff benefits have improved and augmented over years yet the customer service has degraded and seem to be more cumbersome.
Unleashing the factual truth behind the statement of increment released by the Cabinet, which denotes that the actual hike is only 14.28%. The new basic pay has excluded certain existing allowances which makes that the actual benefit will remain only 12% for most of the cadres. With the implementation of the 7TH Pay Commission, the crux of the matter lies in the State which will subsequently have a greater financial burden. Moreover, the marginal impact of ‘Brexit effect’ on India is anticipated to remain positive on the Indian economy.
Expectations from the 7th Pay Commission and BJP-led Government, seem to increase in the same pace with the promises made by Prime Minister, Narendra Modi. The benefit should percolate in the lives of the common people, before they can laud the government in high praise and appreciation. We expect an inclusive growth where not only the smart cities reap the boon, but an enormous mass of humanity which resides in the rural India should also be an integral part of the developmental structure.