New Delhi, June 25: Modi government may delay most awaited Seventh
Pay Commission as a result of Brexit fallouts. Reportedly,
implementation of the 7th CPC could be delayed for 2-3 months in the
wake of volatility in the markets following after Britain's decision to
pull out the European Union.
Read more: Seventh Pay Commission: Good News! Govt staff likely to get
30% more 'increment' than recommended
As per media reports, it will take minimum 2-3 months for markets to
gain its stability back. At a time when fiscal health is already under
stress, government can't put more burdens on exchequer. Around Rs 1,
00,000 cr is needed to implement salary increment and arrears under
Seventh Pay Commission scheme.
Brexit: 7th CPC likely to be delayed
As per Zee News, "In order to stabilize overall outflows from the
domestic equity markets, government needs to adopt wait-and-watch policy
for another quarter before thinking of implementing the payout as any
haste can further increase volatility in the market".
Earlier reports said that Government could implement Seventh Pay
Commission from August 1. It was said that Central government Employees
would get increment in their July salary and six months arrears in the
month of October.
On Friday, Britain voted to quit the European Union after 43 years of
membership, throwing the world markets in a tailspin and leaving
European leaders worried over how to stem a rising Eurosceptic tide.
The vote rattled Indian financial markets too, shaving over 1,000
points, or 4 per cent, off a key equities index, while pulling the rupee
just below the 68 mark to the dollar.
Read more: 7th Pay Commission decoded: Know all about salary increment,
past pay commissions
Both Finance Minister Arun Jaitley and Reserve Bank of India Governor
Raghuram Rajan sought to calm the markets and said there was no cause
for panic as India's economic fundamentals remained strong and along
with other macro indicators.
"We are well prepared to deal with the short and medium term Brexit
consequence -- strongly committed to our macro-economic framework with
focus on stability," Jaitley tweeted from Beijing.
Rajan said investors need not panic over the rupee. "We are comfortable
on foreign exchange reserves. We can use it when necessary."
OneIndia News
(With inputs from agencies)
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