New Delhi: Government on Wednesday decided to set up a high-powered panel headed by Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.
The Cabinet has approved the setting up of Empowered Committee of Secretaries to process the recommendations of 7th Pay Commission in an overall perspective, Parliamentary Affairs Minister M Venkaiah Naidu told reporters here.
The implementation of the new pay scales is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer in 2016-17. Subject to acceptance by the government, they will take effect from January 1, 2016.
The Empowered Committee of Secretaries will function as a Screening Committee to process the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion, an official statement said.
Finance Minister Arun Jaitley had said earlier that he was not worried about fiscal deficit and government would be able to meet its target despite additional outgo on account of higher pay.
He had admitted however that the impact of implementing the recommendations, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.