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Revenue buoyancy may meet pay hikes: FM

Finance Minister P Chidambaram, on Sunday, said buoyancy in revenue collections could meet the additional burden to pay the salary hike of Central government employees after the submission of Sixth Pay Commission report later in February.

"If my additional revenues are buoyant that will pay for the increment, failing which I will fall back upon the headroom that I have left for myself," Chidambaram said.

When asked about the likely impact of sixth pay commission, Chidambaram said, "I do not know what the liabilities of Central Pay Commission will be."

On why funds were not provided in the budget for possible hike in salary of employees, Finance Minister said, "I do not know what the recommendations would be. The budget already provides for the normal increase of 2008-09. When the Central Pay Commission report comes, it will subsume the increase of 2008-09 and provide a little more."

"I have left for myself headroom," he said, adding, "that incremental has to be provided for."
When asked about the Railway budget earmarking Rs 5,000 crore in anticipation of the pay commission recommendatins, Chidambaram said, "I don't know the numbers. Therefore I do not quantify."

Source : Press Trust of India