Gandhinagar: After Central Government of India’s cabinet approval of 7th Pay Commission recommendations, the state Government of Gujarat will bear an additional burden of Rs. 6000 (approx.) crore based on the 23.5% salary hike. Earlier, Gujarat Government stated that they would not able to implement or take burden of the 7th Pay Commission.
Large Salary Cheques and Pensions
The state Government of Gujarat has paid about Rs. 28,000 crore as salaries, and pensions for its 8,67,000 employees and pensioners in 2014-2015.
Out of total salaries and pensions, about Rs. 6800 crore was spent on state govt employees, Rs. 1300 crore for self-governance and local institutes employees, Rs. 7300 crore for panchayat employees, and Rs. 5300 crore for employees of grand-in-aid educational institutes.
It needs to be mentioned here that the total expenditure on salaries and pensions of Rs 28000 crore, grew by roughly 10 per cent over the previous year’s Rs 25,000 crore.
Assembly Elections in 2017
The state Government of Gujarat, ruled by BJP could not afford any issues regarding the 7th Pay Commission from the state government employees. Hence, it is expected that the state Government of Gujarat will implement the seventh pay commission in a timely manner.
Official Statement by the Finance Minister of Gujarat
Speaking to media persons, Saurabh Patel, Finance Minister, said that with the announced 23 per cent salary hike, the burden on state treasury would be around ₹6,000 crore but the State government has no plans to levy any new taxes or hike existing taxes to recover the deficit caused due to the pay revision.
News Story Article: 7th Pay Commission Gujarat: State Govt may bear additional Rs. 6000 crore burden
News article first published on June 29, 2016.