India has just made 10
million government workers and pensioners very happy, handing out a bumper 23%
increase in pay.
The one-off raise, which has
been approved by Prime Minister Narendra Modi, will strain India's government
budget but also provide a boost to consumer spending.
The move is not without
risk, however: Inflation is currently under control at roughly 5%, but more
consumer spending could cause price increases to accelerate.
An estimated 4.7 million
government employees and 5.3 million pensioners stand to benefit from the pay
hike, which was recommended by a government commission that is convened once a
decade.
The hikes, backdated to
January 1, take the minimum salary for a government employee from 7,000 rupees
($100) per month to 18,000 ($270) per month.
At the other end of the
scale, cabinet secretaries and other top employees will be paid 225,000 rupees
($3,300) per month.
The increases will cost the
central government an estimated $15 billion during the current financial year.
No comments:
Post a Comment