What will be the effect of the Sixth Pay Commission?
We do not know what will be the recommendations of the new Pay Commission. But I am sure it will increase inflation and stifle economic growth. Also, once the impact on states and other quasi-government bodies is factored in, the Sixth Pay Commission will cost 1.5 per cent of GDP, something India cannot really afford. This represents regressive transfers from the poor of the country. The poor pay through higher taxes for a salary budget that could have been spent on physical and social infrastructure. Do you think setting up the new Pay commission is a regressive move? Yes, it is a regressive move. First of all, where does the money come from to give higher salaries to millions of government employees? The Pay Commission recommendations on salary increases benefit 4.2 million central government employees, and 20 million state government employees when the recommendations eventually trickle down to states. But this hike is paid for by the 380 million who work outside the government. Soo
