Budget 2016: Final burden of pay hike of central govt employees yet to be assesed, says FM Jaitley

Zee Media Bureau

New Delhi: Finance Minister Arun Jaitley is open to meeting central government employees' demand seeking a better pay hike over the recommendations of the 7th pay commission.

"The secretaries panel will decide the final burden on the government, a significant part of liabilities arising out of 7thCPC have already been factored in the Budget", said Jaitley, while replying to a question in his post -Budget interaction with media on Monday.

The central government employees unions have been seeking a minimum pay hike of Rs 26,000, a hike of around 44% on the pay panel's recommendation.

Elaborating on the Budget presented in the Parliament, Jaitely said that this Budget deals with the reality of India, and agrarian sector, which is in distress--requires attention.

He added that there is need to meet social sector commitments and create rural infrastructure which includes roads, electrification, health insurance, LPG gas connections.

He added that inking subsidies through Aadhar will prevent unfair utilisation of subsidies.

Finance Minister was present with the Chief Economic Advisor, Economic Affairs Secretary, Finance Secretary, Revenue Secretary, Disinvestment Secretary, among others.

Talking of consolidation of Public Sector Banks, Jaitley said that the immediate agenda of the government is to strengthen the banks by recapitalisation. Thereafter, consolidation of the bank with its subsidiaries or consolidation of a weak banks with strong bank will be looked into.

Talking of maintaining a pragmatic fiscal deficit target, the Finance Minister said that an advise from experts can also be considered.

Replying to a query, the Finance Minister added that the Budget is a combination of several things and prioritizes areas which need attention, be it the transport sector, resolution of disputes, banking insolvency, making our universities globally competitive.

The new cess Kishi Kalyan Cess of 0.5 percent on all taxable services effective from June 1 this year, and 1-4 percent infrastructure cess on cars, will be subsumed once the GST comes into place, added Jaitely. 

On the question on retrospective taxation, he said that the NDA government had clearly outlined that it will not tax retrospectively. "However, if there is a pre-exising order, it does not disappear...the law allows for settlement", said Jaitley.