Arun Jailtey: Rs1.1L cr more for pay panel, OROP implementation

More incentives will be given in the next year’s budget to increase farm productivity: Jaitley

By: ENS Economic Bureau | New Delhi | Published: February 6, 2016 1:04 am
arun jaitley, OROP, seventh pay commission, finance ministry, budget 2016, fiscal consolidation, finance news, economy news Union Finance Minister Arun Jaitley.

The government on Friday said the 2016-17 Budget will have to make provision of Rs 1.10 lakh crore for implementation of Seventh Pay Commission recommendations and One Rank One Pension (OROP) scheme along with providing more incentives for the agricultural sector.

“During the financial year 2016-17, the central government has to make provision for about Rs 1.10 lakh crore in order to meet the liabilities on account of implementation of Seventh Pay Commission recommendations and One Rank One Pension Scheme,” finance minister Arun Jaitley said while addressing the meeting of Consultative Committee on Budget Suggestions.

Share This Article
Share
Related Article

The finance minister added that even though the expenditure has been more than the Budget estimate this year, the government will manage its fiscal deficit targets.

“We will be able to contain the fiscal deficit as per the target fixed for the current financial year 2015-16…this was also the first time that the real expenditure amount was higher than the Budget proposal…this year we have spent more but still, we will very well manage our deficit targets,” a finance ministry statement said.

Concerns of a slippage from fiscal consolidation road map have surfaced due to a likely shortfall in direct tax collections and disinvestment proceeds this year.

The Seventh Pay Commission has recommended 23.55 per cent overall hike in pay, allowances and pensions of government employees with effect from January 1, 2016. The government on Wednesday had said OROP scheme will cost Rs 7,500 crore per year as against the earlier estimate of Rs 8,300 crore and that the defence pension outlay will increase by 20 per cent in 2016- 17.

In February last year, Jaitley had redrawn the fiscal consolidation road map, stretching the time to reach the fiscal deficit figure of 3 per cent of GDP from two years to three years and setting the fiscal deficit target at 3.9 per cent for 2015-16, 3.5 per cent for 2016-17 and 3 per cent for 2017-18.

Highlighting the low farm growth in last two years due to insufficient monsoons, the finance minister said “highest ever” amount was provided to states for drought relief during this financial year and more incentives will be given next year to increase farm productivity.
Commenting on India’s declining exports, Jaitley said the country’s economy has been affected due to “uncertain and fragile situation” of the world economy. But, India continues to be “one of the fastest growing economies in the world” and there is still potential to grow at a “much faster pace.”

He added, “silver lining is low international commodities and oil prices which in turn has helped in better macroeconomic situation of the country.”

Increase in tax exemption limit for salaried class from existing Rs 2.5 lakh to Rs 4 lakh, more stress on widening of tax base, severe punishment for those evading taxes, increase in threshold limit for mandatory PAN card requirement for any transaction above Rs 2 lakh to Rs 5 lakh, were among the several suggestions for Budget made during the meeting.

The participants also suggested raising service tax exemption limit from Rs 10 lakh to Rs 25 lakh, exemption of sale receipts and skill development related education institutions from service tax and accountability of assessing officers for passing unreasonably high tax liability orders which are later turned down by the Appellate authorities.

Higher allocation for agricultural sector, more clarity in crop insurance scheme, relief to industries to set up sewage and affluent treatment plants in order to keep the environment clean were among the other suggestions made for next year’s Budget.

For all the latest Business News, download Indian Express App

  1. Prem Babu
    Feb 8, 2016 at 8:00 am
    BJP wants to keep a hand full of Officers Happy by increasing their Pensions in par with IAS caders, at the same time BJP is dishonoring / disheartening a Bag full of PBOR's , these PBOR's only came handy in last elections, now let's see how BJP will win the coming elections by neglecting the OROP of PBOR's, what about the war-widows and widows they got peanut's as OROP arrears, Shame on BJP for cheating the most deserving hand to mouth pensioners, their cruses will make BJP to bite the dust in coming elections, PM wants to buy bullet train for what, to kill indians with the fastest train, when ever there is a mishap in normall trains itself so many casulties are there if a Bullet train crashs AtoZ will die in sush accidents, it seems, BJP Govt. has gone mad, it cannot solve the most burning issues of the nation but wants grow it's GDP.
    (0)(0)
    Reply
    1. Prem Babu
      Feb 8, 2016 at 7:36 am
      One Rank One Pension, what is this nonsense dome by FM Arun jaitely and Diffence Minister Manohar parrikar, how come a Y group Jwo/Jco is getting an increase of 450 only, and this Rank Jwo is getting 17000 Arrears while other Rank's are paid up to Rs. 140000/ please check and satisfy yur self
      (0)(0)
      Reply
      1. K
        Karunakaran
        Feb 6, 2016 at 2:04 am
        Just three days ago the dopey said the OROP would cost an additional Rs 7,500 crores. Now he claims he will cost Rs 100,000 crores. Will anybody believe this dopey? But don't forget! The photoshopped selfie-chaser dokhlabhai has already signed the deal for the Rs 100,000 crores Bullet train to Gujjuland, for the pleasure of all the Gujjus, to be paid for by all Indians. Dopey and the selfie-chaser dokhlabhai want Indians to pay Rs 100,000 crores Bullet train to Gujjuland, but not Rs 7,500 for OROP. That is baniya economics for you.
        (0)(0)
        Reply
        1. P
          Pavan
          Feb 8, 2016 at 4:03 pm
          It means people should ride on bullock cart or by foot rather on cars, aeroplanes or on trains. It means that people should go back to 15th century
          (0)(0)
          Reply