Govt extends 7th Pay Commission for teaching faculty as ruling BJP is blamed for mismanagement of Indian economy
New Delhi, October 12: The benefits of Seventh Pay Commission has been extended by the government on Wednesday for the teaching faculty of central and state universities and aided colleges.
From 1 January 2016 was the seventh Pay Commission recommendations for the central government staff implemented.
Facts about the extension of Pay Commission to college teachers:
The hike would be between Rs 10,000 and Rs 50,000. The government said that the revision would result in a 22 – 28 percent pay rise at the entry level. From 1 January 2016, the approved pay scales would be applicable.
Who all are benefited
-7.58 lakh teachers and equivalent academic staff in the 106 universities or colleges which are funded by UGC/ MHRD
-329 Universities funded by state governments
-12, 912 government-owned and private aided colleges affiliated to state public universities
-Teachers of 119 centrally funded technical institutions such as IITs, IISc, IIMs, IISERs, IIITs and NITIE
The revised pay scales will require adoption by the respective governments for the institutions funded by state governments.
Impact on government finances
-Rs 9,800 crore would be the annual liability for the government.
-Centre will bear an additional burden of the states.
Rationale behind the increase
-Expected to improve quality of higher education and also attract and retain talent.
-To offer a consumption boost for the economy.
The decision comes when the government has come under attack from within the ruling BJP and outside for the mismanagement of Indian economy and thus worsening the economic slowdown.
Impact on Economy
It is a confidence booster for the middle class as the only factor fuelling economy is the consumption and not investment. The decision has come during the festival season.
The Reserve Bank of India’s (RBI) recent Consumer Confidence Survey depicts that the Current Situation Index (CSI) waned further into the pessimistic zone. It reflects deterioration in sentiments on the employment scenario, income, and the price level.
It may also push the inflation up if in case the move results in increased consumer spending. Due to the House Rent Allowance (HRA) hike that kicked in from July, a section of economists is expecting a bump up in inflation. As per RBI view, “the baseline path of headline inflation excluding the impact of house rent allowances (HRA) awarded under the recommendation of the seventh central pay commission (CPC) was likely to fall below the projection made in June to a little above 4 percent by Q4.”